Concerns Over Inflation and Trade Policy Uncertainty

Federal Reserve Bank of San Francisco President Mary Daly expressed her concerns on Tuesday regarding a possible temporary increase in inflation, attributing it to President Donald Trump's extensive tariffs. Daly emphasized the lack of clarity surrounding the administration's trade policies, suggesting that such uncertainty warrants a cautious approach from the Federal Reserve in its monetary policy decisions.

Current Monetary Stance Described as Modestly Restrictive

Despite these concerns, Daly described the central bank's current monetary policy as "modestly restrictive," indicating a balanced but vigilant stance towards navigating the uncertain economic landscape shaped by trade policies.