Fed’s Daly: It is too early to know if rates should be cut or by how much

Fed's Daly is crossing the wires.

Key comments:

• Doesn't think Fed is taking policy signals from financial markets.
• Seeing indications that inflation expectations are showing signs of getting untethered.
• Says rate cut in July would depend on the data, it is too early to know if rates should be cut or by how much.
• More accommodative policy may stimulate consumer spending.
• Markets are trying to think about fed reaction function.
• We had softer inflation readings, softer jobs report.
• Need to see if data are transitory or not.
• Need to see if forces slowing the economy in a meaningful way.
• Tariffs seen as modest impact on inflation, growth.
• Not seeing much pass through on tariffs to final prices.
• Seeing indications that inflation expectations are showing signs of getting untethered.
• Rate cut in July would depend on the data, it is too early to know if rates should be cut or by how much.