MNI BRIEF: Daly Says Fed Has Time To Be Patient On Rates

Federal Reserve Bank of San Francisco Mary Daly said Tuesday monetary policy is well positioned to wait for more clarity on how the economy will fare under the Trump administration's tariffs and other policy shifts. 

"We have time to be patient. Policy is a good place. My reaction function is to stay in a center position. We don’t have enough information to bring those confidence bands in," she told an Atlanta Fed conference in Amelia Island, Fla. 

The current administration is making changes to trade, spending and taxes, immigration and deregulation. "That tells me we could have a net-net effect that we don't really know," Daly said, adding she's gathering critical intelligence from business contacts. "My outlook isn't gloomy at this point, it's just thoughtful." (See: MNI INTERVIEW: Fed Cuts Start In Q4 As Tariffs Weigh -Crandall)