Fed’s Daly: Fed must watch both sides of mandate

Mary Daly of the San Francisco Fed highlighted the importance of monitoring both sides of the employment mandate. She suggested that the current low-hiring, low-firing market could persist or transition to a state with no hiring and increased firings. Her comments bring to light the uncertainties surrounding the labor market and the potential implications for monetary policy. Investors might need to prepare for various scenarios as upcoming labor data could influence the Fed's decisions on interest rates. The focus will likely be on how the balance between employment and inflation impacts future rate hikes.