San Francisco Fed president Daly...
- it is hard to imagine a dire US economic situation driven just by trade conflict itself, but the uncertainty is concerning
- resolution of trade disputes would reduce headwinds, but delaying resolution could add to risks
- she is putting a lot of weight on uncertainty as a possible drag on US economy
- she does not see a US for a recession around the corner
- US economy has momentum but headwinds are going to slow it down
- she worries that bad mood will dampen growth
- Fed has tools it needs to achieve its dual mandate
- acting early to prevent rates falling to 0% is more effective than trying to move off 0 rates later
- risk management is on my mind
- we have not seen 2% inflation sustainable and that is concerning
- more research needed on how to retool balance sheet holding
