US Economy in a 'Good Place' Despite Challenges

Federal Reserve Bank of San Francisco President Mary Daly expressed confidence in the resilience of the United States economy during her speech on Friday. "The US economy has been extremely resilient, and in my determination is in a good place," Daly remarked, highlighting the current economic stability.

Businesses Grapple with Uncertainty

Daly pointed out that uncertainty remains a significant concern for businesses, affecting their investment decisions. "Companies are still investing, but are unsure how much they can engage in," she explained. The impact of tariffs on certain sectors, such as distribution and trucking, has led to a cautious slowdown as businesses assess the implications.

Monetary Policy Maintains Restrictive Stance

On the monetary policy front, Daly assured that the Fed's approach is appropriately restrictive, effectively applying downward pressure on inflation. This strategic positioning is seen as a key factor in sustaining the economy's current 'good place'.