Fed's Daly: If oil prices come back down, a rate cut is not out of the question

Comments from San Francisco Fed President Daly If inflation stays elevated for longer than anticipated, we would hold steady until we know we are getting the inflation job doneWe had work to do before the oil shock and now there's more work to doPersistently higher oil prices would hurt inflation but also hurt growthWe're already seeing higher prices… If inflation stays elevated for longer than anticipated, we would hold steady until we know we are getting the inflation job done We had work to do before the oil shock and now there's more work to... If inflation stays elevated for longer than anticipated, we would hold steady until we know we are getting the inflation job done We had work to do before the oil shock and now there's more work to do Persistently higher oil prices would hurt inflation but also hurt growth We're already seeing higher prices show through to the economy with people pulling back on travel because they are worried about… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.