Mary Daly, President of the Federal Reserve Bank of San Francisco, stated on the 10th (local time) that the U.S. had an inflation challenge even before the oil price shock, and now that task will take longer. She said that if the conflict in Iran is resolved quickly and oil prices fall, an interest rate cut is "not impossible," but if inflation remains higher than expected for an extended period, the Fed will wait until it is confident that the inflation problem has been resolved. President Daly assessed that the possibility of an interest rate hike is lower than a cut or a hold. She warned that if high oil prices persist, it would affect not only rising inflation but also economic growth, noting that already high prices are spreading throughout the economy, leading consumers to reduce their outings due to concerns about cost burdens. However, she emphasized that it is not a fundamental price increase for now. She added that the key issue is whether the ceasefire can be sustained, and if it holds, consumer price index (CPI) data will not be very significant. She also mentioned that high inflation figures themselves would not surprise anyone. President Daly stressed the importance of bringing inflation down to 2% without sacrificing employment, and assessed that the current risks to the Fed's full employment and price stability goals are largely balanced.
