As the Federal Reserve prepares for its next meeting in December, San Francisco Fed President Mary Daly shared her thoughts on the importance of maintaining a flexible and open-minded approach to decision making. In an interview with Bloomberg, Daly emphasized the need to balance the goal of keeping inflation under control without jeopardizing the labor market.

Daly’s comments come at a time when the Fed is facing a complex economic landscape, with inflation running at its highest level in over two decades while the labor market remains strong. The Fed has cut interest rates twice this year to support the economy, and Daly believes that it was the right move in October. However, she also acknowledges that the central bank must remain vigilant in monitoring inflationary pressures and be prepared to take further action if necessary.

“It’s important to keep an open mind and be prepared to adjust our policy stance as needed,” Daly said. “We want to make sure we’re not letting inflation get ahead of us, but at the same time, we don’t want to jeopardize the labor market gains that we’ve made.”

Daly’s comments highlight the challenges facing the Fed as it navigates a delicate balance between promoting economic growth and maintaining price stability. With inflation running hotter than expected, the Fed may need to reassess its policy stance in the coming months. However, Daly emphasized that any decisions will be data-driven and made with careful consideration of the broader economic landscape.

“We’re going to continue to monitor the economy closely and make adjustments as needed,” Daly said. “Our goal is to promote a strong and sustainable recovery, and we’ll do whatever it takes to achieve that goal.”

San Francisco Fed President Mary Daly’s comments underscore the importance of maintaining an open-minded approach to decision making in the face of complex economic challenges. By balancing the need to control inflation with the need to support the labor market, the Fed can help promote a strong and sustainable recovery. As always, the Fed will continue to monitor the economy closely and make adjustments as needed to achieve its policy goals.