[Fed's Daly Prepares for High Inflation Ahead of CPI Data Release] Jin10 News, April 10 – Federal Reserve official Daly stated that even before the oil price shock, the U.S. already had work to do in addressing inflation, and now this work will simply take longer. If the Iran conflict is resolved quickly and oil prices fall, a rate cut is 'not impossible'; however, if inflation remains higher than expected for an extended period, the Fed will stay on hold until it is confident the inflation issue has been resolved. She believes the likelihood of a rate hike is lower than that of a rate cut or maintaining current rates. Daly pointed out that persistently high oil prices will mean elevated inflation but will also impact economic growth. She has already observed higher prices being passed through to the economy, with people reducing travel due to concerns over rising costs. However, she emphasized that this is not a fundamental price increase at the moment. She believes it is necessary to monitor how the conflict evolves and how businesses pass on price increases. She noted that the real issue lies in whether the ceasefire can be sustained; if it can, then CPI data becomes irrelevant, as high inflation data itself will not surprise anyone. She stressed that bringing the inflation rate down to 2% is crucial, but doing so at the expense of employment would put households in a difficult position. Currently, the risks faced by the Fed in achieving full employment and inflation targets are roughly balanced.