Daly Says Fed Needs to Guard Against Inflation 'Drift'

Federal Reserve Bank of San Francisco President Mary Daly cautioned that the Fed must remain vigilant against a gradual drift in inflation expectations, even as she indicated that immediate alarm about longer-term inflation pressures is not yet warranted. Speaking at an event in Tokyo, Daly emphasized the importance of proactive monitoring to prevent inflation expectations from becoming unanchored. Her comments suggest the Fed is focused on maintaining price stability while carefully assessing inflation trends.