SF Fed Pres.Mary Daly: More work to do on inflation

More work to do on inflationWe are at a good place.Remarkable progress on inflation is not victorySlowing inflation without significant decline in unemployment is unequivocally good newsNeed more time, data to be sure of continued progress on inflationRisks ahead include slower inflation progress, faltering labor marketFed needs to resist temptation to act quickly when patience is neededUncertain whether better productivity numbers will continueDisruptions in Red Sea, Panama Canal could be a new source of riskOngoing economic momentum is a risk to inflation progressSustainable price stability and full employment are the goalsA big part of the story is supply. Bottlenecks have fallen. Has helped good price inflation to go back downUS workers came back to work last year.Anticipation its highest level in two decadesAt the same time we saw a surge immigrationWe didn't just get more worker, the workers were more productive.The decline in inflation is not just come from supply, the decline has also come from demand2/3 of core PCE inflation came from the demand side.Inflationary expectations of households is at pre-pandemic levelsBusinesses inflation expectations has also improvedThe risks are more balanced. So far labor conditions have eased without reducing jobs. At the start of the speech, the major indices are trading at:Dow Industrial Average -6.48 points or -0.02% at 38769S&P unchanged at 5029.67NASDAQ index -36.21 points or -0.23% at 15869.14The two year yield at 4.669% and the yield is at 4.300% This article was written by Greg Michalowski at www.forexlive.com.