Fed Official Pushes Back on Pre-emptive Policy Moves

Published On Feb 4, 2025, 5:02 AM

Mary C. Daly, president of the Federal Reserve Bank of San Francisco, emphasized the need for the Fed to carefully evaluate President Trump's policies regarding interest rates, given strong economic growth and ongoing inflation. Recent decisions by the Fed indicate a cautious approach amid uncertainty surrounding Trump's potential return to the presidency. Daly stressed that the Fed would not act prematurely, focusing instead on the overall impact of Trump's policies rather than addressing them on a piecemeal basis.

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Given the Fed's cautious stance and the uncertainty regarding Trump's policies, businesses may face potential disruptions ahead, especially in trade and regulation. This could lead to mixed economic signals in the short term, influencing investor sentiment accordingly.

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