Daly: the bond market is showing confidence in the Fed’s course

San Francisco Fed President Mary Daly said in an interview with Bloomberg Television that the U.S. Treasury market is signaling that monetary policy is currently in an optimal position.

Daly noted that, to assess signals related to monetary policy, it is important to pay attention to bond prices. She added that they may also reflect stronger demand for AI products and AI infrastructure. She reiterated that, in her view, the price shocks caused by the introduction of tariffs, a sharp rise in oil prices, and the development of artificial intelligence will prove temporary, allowing inflation to resume its decline amid moderately restrictive monetary policy.