Fed Daly jobs report: inflation stays the Fed's top concern
Fed's Daly told CNBC the jobs report is good news, but said inflation has been too high for too long. She remains prepared to raise rates if needed.
In this article
Fed Daly jobs report comments on Friday showed a policymaker welcoming a firm labor market while keeping inflation at the top of her list, according to investingLive. Daly told CNBC that she is prepared to raise rates again if the data call for it, and she signaled that more tightening is likely.
Key points
- Daly described the jobs report as good news and said full employment looks broadly stable.
- Wage growth is not booming, and real wages are falling, which she highlighted as a key distinction.
- Inflation is her number one priority, and she would like more confidence that it is moving lower.
- She said the recent hike was the right move and that holding at the last meeting also made sense.
- She is prepared to raise rates if warranted, but wants more information on timing and size.
What happened
According to investingLive, Daly appeared on CNBC to discuss the latest employment figures, wages and inflation. Her overall message was hawkish. She said the jobs data were encouraging and that she feels hopeful when she thinks about the American workforce, but she was clear that the central bank still has work to do on prices.
On inflation, Daly said she would like to have more confidence that price pressures are easing. She described inflation as high for too long and said it must remain the Fed's first priority. She also noted that a strong labor market gives the Fed room to keep working on inflation.
Daly named several sources of uncertainty, including tariffs, the war, and developments in artificial intelligence. She said inflation is more stubborn than policymakers would like, and that the Fed will likely have to tighten policy further.
On the pace of policy, Daly said the Fed needs to be deliberate. She said more information is needed to judge how much additional tightening is appropriate and when it should come. Her comments suggest the committee is not yet ready to commit to a specific path.
Daly also addressed the AI investment boom. She said there is a substantial commitment to AI across the economy and that any adjustment in the trade should be orderly. If signals of slowing demand are being sent, she said growth could come down a little, but she is not worried about a substantial decline in growth.
Her broader read was that businesses want inflation to come down and remain cautiously optimistic about the outlook. She described the current period as a rebalancing of the economy, which she said is the kind of adjustment she would hope for after a stretch of painful volatility.
Why the Fed Daly jobs report matters for traders
Central bank commentary shapes expectations for interest rates, and rate expectations influence currency values. When a policymaker says a strong labor market gives room to act, markets often focus on whether inflation data will confirm the need for action. The key question is how quickly the central bank moves from words to decisions.
Daly's remarks highlight a split between the job market and household finances. Employment can hold up while real wages fall, meaning workers' purchasing power is being squeezed by prices. That combination can keep a central bank cautious about easing and focused on further tightening.
Her comments also show that the Fed is not locked into a fixed plan. She said more information is required before deciding on the next move, which means incoming economic data will carry significant weight for the path of policy. For traders, the jobs report provides flexibility, while inflation data will determine how that flexibility is used.
Market reaction and data
The material available does not include intraday price moves following Daly's remarks, so this article cannot describe how markets responded. The table below shows the ECB daily reference rates for 2026-11-06. These are daily fixes, not live quotes, and they do not measure reaction to the comments.
| Pair | ECB reference rate (2026-11-06) |
|---|---|
| EUR/USD | 1.1165 |
| GBP/USD | 1.3385 |
| AUD/USD | 0.6871 |
| NZD/USD | 0.5544 |
| USD/JPY | 158.33 |
| USD/CHF | 0.8189 |
| USD/CAD | 1.4066 |
| USD/CNY | 6.6713 |
Source: ECB reference rates, daily fix, 2026-11-06. These figures are reference rates rather than live quotes.
What to watch next
- New Zealand Parliamentary Elections, scheduled for Friday, 21:45 UTC, which is a high-impact event for NZD traders.
- Upcoming inflation data, which Daly identified as the main factor in deciding when and how far to tighten.
- Further Fed commentary on the pace of rate changes and whether the Fed moves to raise rates again.
- Signals on AI investment and demand, since Daly said a slowdown there could ease growth.
- Wage and real income trends, which will help show whether households are feeling the squeeze.
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FAQ
What did Daly say about the jobs report?
Daly called the jobs report good news and said the labor market looks broadly stable. She also stressed that wage growth is not booming and real wages are falling.
Is the Fed Daly jobs report a sign of more rate hikes?
Daly said she is prepared to raise rates if it is called for and expects further tightening. She also said the Fed needs more information before deciding on timing and size.
Does Daly have a vote on Fed policy?
According to investingLive, Daly is a voting member in 2027. Her votes will carry weight in future policy decisions.
Risk warning: This article is for information only and is not investment advice. Trading forex, CFDs, stocks and crypto carries a high risk of losing money. Prices move fast – check live quotes before you trade.
