Fed’s Daly Says Need to Avoid Mistake of Holding Rates Too Long

Federal Reserve Bank of San Francisco President Mary Daly said the US economy is probably suffering a downturn in demand while tariff-related inflation appears to be contained for now, and warned against keeping interest rates too high for too long.

“If you unpack the data, what you see is, you don’t see inflation running up in services or housing, and importantly, you don’t see it spreading into inflation expectations,” Daly said Monday on Bloomberg TV.

“We also see a labor market that’s softening and wage growth that is moderating, so you’re really not going to see a lot of ...