San Francisco Fed President downplays differences in Fed statements, says wording is less important than actions.

Mary Daly, President of the San Francisco Federal Reserve, downplayed internal disagreements within the Fed over the wording of policy statements, emphasizing that the committee's actions are the true policy signal.

Daly said in an interview on Thursday, "The wording of the statement is less important than the actions of the Federal Open Market Committee," noting that the real signal from this meeting is that "everyone agreed on this decision." She also said she would not oppose the vote.

At last month's policy meeting, three voting members raised objections to hints in the post-meeting statement suggesting a future resumption of rate cuts.

They argued that the Iran war pushed up oil prices and increased uncertainty about the economic outlook, so the policy statement should equally weigh the possibilities of raising or lowering interest rates. This rare multi-member dissent sparked market attention on the Fed's policy path.

Energy price shocks have not yet been transmitted to inflation expectations; current monetary policy is in a "mildly restrictive" zone

Daly stated that there is currently no sign that soaring energy prices are driving medium- and long-term inflation expectations higher.

She pointed out that it is "too early" to draw conclusions at this stage. If the Iran conflict ends, oil prices fall back, and the effect does not spread to broader areas of the economy, the previous macroeconomic fundamentals are likely to be restored.

Daly believes current monetary policy is in a "mildly restrictive" range, and if the US-Iran conflict is resolved, it will exert downward pressure on inflation.

Meanwhile, the labor market remains stable without generating inflationary pressure, providing the Fed with policy space during the wait-and-see period.

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