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Federal Reserve (Fed) Bank of San Francisco President Mary C. Daly hit newswires late Thursday, noting that lopsided trade policy from the White House is keeping the Fed firmly planted in a wait-and-see mode as policymakers brace to see what kind of impacts on the US economy that steep import taxes will have on the broader economy.

Key highlights

Labor market in solid shape.

Workers are worried about inflation.

We won't get to 2% inflation this year.

We're really making progress on inflation.

I'm seeing balance in labor market we need for 2% inflation.

Bond yields show the markets are trying to process uncertainty about policy and the economy.

Fed policy in a good place. The US economy is in a good place.

On tariffs, I don't know the scope, size or timing. It's premature to speculate how it will work out.

Fed is wait to see.

Businesses say they are continuing to do what they do, but are taking fewer risks.

Deregulation and tax relief are usually a net positive for growth.

We expect to continue to bring inflation down and the labor market is slowing but solid.

What I see is a general sense of cautious optimism.

I expect that we'll be able to manage policy as required.

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