Fed’s Daly says U.S. policy is ‘slightly restrictive,’ next move unclear
AI Market Summary
San Francisco Fed's Daly characterized policy as "slightly restrictive" and emphasized uncertainty about the next move amid strong AI-related investment, a stable labor market, and easing oil prices after the Iran ceasefire. A sharply weaker nonfarm payrolls print prompted traders to scale back near-term rate-hike expectations. The mix of softer labor data and Fed caution may temper near-term USD strength and reduce rate volatility.
Impact level
● Medium
Affected assets
NCSIDXY2USD/USDT+0.10%
AI Insight · NCSIDXY2USD/USDTAI Insight
● Neutral
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San Francisco Fed President Mary Daly said at a Banco de España conference in Santander, Spain, that U.S. monetary policy is “slightly restrictive,” but the Fed’s next step is unclear. She cited exceedingly strong investment growth in AI-related technology, a stable labor market and a decline in oil prices since the Iran war ceasefire. Daly said AI’s effect on inflation is uncertain and could cut both ways, lifting demand in the near term while boosting supply over time. Separately, U.S. job growth slowed sharply last month, prompting traders to scale back bets on rate hikes in July and September.
