San Francisco Federal Reserve President Mary Daly said on Thursday that U.S. monetary policy is "slightly restrictive" but that with "exceedingly strong" investment growth in AI-related technology and a stable labor market it's unclear what the Fed's next step should be.
"I think there's a scenario where we have to fight inflation that turns out to be more persistent," Daly said at a Banco de España conference in Santander, Spain, noting that the drop in oil prices since the Iran war ceasefire is good news for the economy and the consumer. "There's also a scenario where the growth just doesn't continue to sustain itself ... or the investment slows because people are worried they haven't seen the gains yet."