Fed's Daly: Returning inflation to target remains top priority

Mary Daly, President of the Federal Reserve Bank of San Francisco, said on Thursday that inflation remains the Federal Reserve's (Fed) primary concern, while emphasizing uncertainty around the economic outlook and the future path of interest rates. Speaking in an interview with Bloomberg TV, Daly noted that although there are similarities between the current environment and the 1990s, policymakers should not assume the economy will follow the same trajectory.

Key takeaways

Just because we have similarities to the 90s doesn't mean it will be the 90s.

On rate path, we don't know how the economy will play out.

Policy is in a good place.

Prepared to respond either way.

Forward guidance not good at this juncture.

Hard to say labor market has firmed.

Labor market is resilient, we've stabilized.

Most worrying today is getting inflation back to target, number one priority."