Fed’s Daly Calls Cooling Demand Without Causing Recession a ‘Struggle’

The Federal Reserve’s delicate balance between curbing demand enough to slow inflation without causing a recession is a “struggle,” said San Francisco Fed President Mary Daly.

To keep inflation low and stable, “we have to balance that off with our dual mandate with full employment,” Daly said at the Symposium on Asian Banking and Finance. “Trying to navigate that to bring inflation down while we do so as gently as possible, not to tip unnecessarily the economy into a downturn that actually influences the full employment part of our mandate, is a struggle.”