🔥Federal Reserve's Daly: Before CPI data release, high inflation needs caution, rate cut possibility exists but depends on oil prices and conflicts

10 April, Federal Reserve official Daly stated that before the oil price shock, the U.S. had already taken measures to address inflation, now it requires more time. If the Iran conflict is resolved quickly and oil prices fall back, a rate cut "is not impossible"; if inflation remains above expectations for a longer period, the Fed will stay on hold until confident that inflation issues are resolved. She believes the likelihood of a rate hike is lower than a rate cut or holding rates steady. Daly pointed out that high oil prices will push up inflation and affect economic growth, and price transmission to the economy has been observed, with people reducing travel due to rising costs, but she emphasized that this is not a fundamental price increase. She thinks it is necessary to observe the development of the conflict and how companies pass on price increases, the real issue is whether the ceasefire can be sustained; if it can, CPI data becomes irrelevant; high inflation…