{"id":125599,"date":"2026-04-10T23:22:00","date_gmt":"2026-04-10T19:22:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=125599"},"modified":"2026-04-11T04:21:05","modified_gmt":"2026-04-11T00:21:05","slug":"daly-signals-caution-fed-ready-to-hold-but-not-ruling-out-rate-cuts","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/daly-signals-caution-fed-ready-to-hold-but-not-ruling-out-rate-cuts\/04\/10\/market-updates\/","title":{"rendered":"Daly Signals Caution: Fed Ready to Hold, But Not Ruling Out Rate Cuts"},"content":{"rendered":"<br \/>Mary Daly has reinforced the Federal Reserve\u2019s cautious stance, emphasizing that interest rates will likely remain unchanged if inflation continues to run above expectations. Her remarks highlight a central bank navigating a complex mix of persistent price pressures and unpredictable geopolitical developments.<br \/>Daly made it clear that the path forward depends heavily on how inflation evolves in the coming months. <br \/><br \/><br \/>If price growth stays elevated longer than anticipated, the Fed is prepared to hold rates steady until there is clear evidence that inflation is moving decisively toward its 2% target. This reflects a commitment to finishing what she described as unfinished work on inflation\u2014work that has now become more challenging due to rising energy costs.<br \/><br \/><br \/>At the same time, Daly did not dismiss the possibility of easing policy. She noted that if geopolitical tensions\u2014particularly those influencing oil markets\u2014ease quickly and energy prices decline, a rate cut could come back into consideration. This underscores the Fed\u2019s flexible, data-driven approach, where decisions are shaped by incoming economic signals rather than fixed forecasts.<br \/><br \/><br \/>Oil Prices Complicate the Inflation Fight<br \/><br \/>According to Daly, higher oil prices present a dual challenge. On one hand, they risk keeping inflation elevated by increasing costs across the economy. On the other, they can slow economic growth by reducing consumer spending power. Early signs of this pressure are already emerging, with households pulling back on travel and other discretionary expenses due to rising costs.<br \/><br \/><br \/>Despite these headwinds, Daly described the broader US economy as fundamentally strong. The labor market has moved into a more stable phase, and economic conditions remain resilient enough to absorb current policy settings. This balance allows the Fed to maintain a restrictive stance while continuing to monitor how external shocks feed through to the economy.<br \/><br \/><br \/>Holding Steady, Watching Closely<br \/><br \/><br \/>Daly indicated that the likelihood of further rate hikes is relatively low compared to the chances of either holding rates steady or eventually cutting them. For now, she sees monetary policy as being in a \u201cgood place\u201d\u2014tight enough to gradually reduce inflation, yet balanced enough to avoid significant damage to the job market.<br \/><br \/><br \/>An important detail she highlighted is how businesses are responding to higher costs. Rather than fully raising prices, many are introducing temporary surcharges, which could be rolled back if conditions improve. This distinction matters, as it suggests inflationary pressures may not become permanently embedded.<br \/><br \/><br \/>Looking ahead, Daly suggested that upcoming inflation data may not significantly alter expectations, as recent price increases\u2014particularly in energy\u2014are already well understood. Instead, the key question is whether geopolitical tensions ease and whether ceasefire agreements hold. If stability returns, inflation concerns could begin to fade more quickly than expected.<br \/><br \/><br \/>A Waiting Game for the Fed<br \/><br \/><br \/>In essence, Daly\u2019s message reflects a central bank in wait-and-see mode. The Fed is not rushing into new decisions but is instead allowing time for the effects of current policy\u2014and global developments\u2014to play out.<br \/><br \/><br \/>For markets, this means continued sensitivity to both inflation data and geopolitical headlines. For policymakers, it means staying patient, vigilant, and ready to act\u2014but only when the direction of the economy becomes clearer.","protected":false},"excerpt":{"rendered":"<p>Mary Daly has reinforced the Federal Reserve\u2019s cautious stance, emphasizing that interest rates will likely remain unchanged if inflation continues to run above expectations. Her remarks highlight a central bank navigating a complex mix of persistent price pressures and unpredictable geopolitical developments.Daly made it clear that the path forward depends heavily on how inflation evolves &hellip;<\/p>\n","protected":false},"author":13,"featured_media":53410,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-125599","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/125599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=125599"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/125599\/revisions"}],"predecessor-version":[{"id":125604,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/125599\/revisions\/125604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/53410"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=125599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=125599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=125599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}