Fed's Daly: Weak Jobs Report Complicates Rates

San Francisco Fed President says February data adds uncertainty to central bank's interest-rate outlook

Published on Mar. 6, 2026

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San Francisco Federal Reserve President Mary Daly said a disappointing February jobs report is adding uncertainty to the central bank's interest-rate outlook as policymakers weigh signs of a cooling labor market against inflation that remains above target.

Why it matters

The weak jobs report intensifies concerns that the labor market could be losing momentum after years of strong growth, complicating the Federal Reserve's efforts to balance inflation and employment goals.

The details

Daly said the data point adds another layer of complexity for policymakers, who are trying to balance signs of labor-market softening with inflation that remains above the Federal Reserve's 2% target. She emphasized that the Fed is not rushing to conclusions based on a single data point and needs more time to evaluate the trajectory of inflation, employment and economic growth.

  • The Labor Department reported on March 6, 2026 that nonfarm payrolls fell by 92,000 in February, defying expectations for a gain.
  • The Fed cut its benchmark interest rate three times during the latter part of 2025 as concerns about economic growth increased.

The players

Mary Daly

The president of the San Francisco Federal Reserve, who said the weak jobs report adds uncertainty to the central bank's interest-rate outlook.

Federal Reserve

The central bank that is trying to balance signs of labor-market softening with inflation that remains above its 2% target.

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What they’re saying

“This jobs market report has got my attention. I don't think you can look through this report, but I also don't think you should make more of it than one month of data.”

— Mary Daly, President, San Francisco Federal Reserve (CNBC)

“It's a very different universe than when we have inflation below our target. But right now we have inflation printing above target. It's been printing above target for some time, so it's really a balance of risks calculation, and I hope the 75 basis points we did last year would put a floor underneath the labor market.”

— Mary Daly, President, San Francisco Federal Reserve (CNBC)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.