Fed's Daly: Must watch both sides of mandate, situation feels precarious

Fed's Daly recently shared insights on the economic outlook, highlighting the cautious optimism from businesses contrasted with workers' skepticism. The current environment of low hiring and firing could shift rapidly, potentially leading to a challenging labor market. While consumer spending and economic growth remain robust, sentiment surveys indicate workers expect fewer jobs and rising unemployment. This disconnect prompts concerns about the Fed's policy adjustments as inflation exceeds their 2% target. The balancing act between price stability and full employment will be critical as the Fed navigates these uncertain waters.