President of the Federal Reserve Bank (Fed) of San Francisco Mary Daly asserts that the US economy's resilience is prompting officials to exercise caution as they await new data. These reports are about to reveal the effects of Donald Trump's policies on businesses and households.
According to Daly, the labor market in the United States is currently stable, and inflation is gradually decreasing. Speaking at a conference hosted by the California Bankers Association, she identified these factors as key to achieving sustainable GDP growth rates in the country.
The current monetary policy in the US is moderately restrictive and can respond quickly to economic changes, especially given Trump's ongoing tax and trading reforms, the official noted.
Last week, Fed representatives decided to keep borrowing costs on hold. Some experts anticipate a rise in unemployment and inflation in the near future, as reported by Bloomberg.