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Fed's Daly: no single most-likely path for rates

BY Reuters | ECONOMIC | 03/23/26 05:09 PM EDT

March 23 (Reuters) - San Francisco Federal Reserve Bank President Mary Daly on Monday said that unless the Iran conflict resolves quickly and the Fed can simply "look through" a temporary increase in oil prices, it is not clear what the Fed's next move on interest rates will need to be.

"There is no single most-likely path," Daly said in a post on LinkedIn, noting a protracted conflict could increase the risk of higher inflation but also a weaker labor market, putting the Fed's two goals in tension. "With policy in a good place, we need to remain flexible, able to respond to rapidly evolving risks."

(Reporting by Ann Saphir; Editing by Chris Reese)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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