San Francisco Federal Reserve President Mary ​Daly ⁠said on Thursday that ‌U.S. monetary policy is "slightly restrictive" but ​that with "exceedingly strong" investment growth in ​AI-related technology and ​a stable labor market it's unclear what the ⁠Fed's next step should be.

"I think there's a scenario where we have to ​fight ‌inflation that turns ⁠out ⁠to be more persistent," Daly said ​at a ‌Banco de España conference ⁠in Santander, Spain, noting that the drop in oil prices since the Iran war ceasefire is good news for the economy and the consumer. "There's also a ‌scenario where the growth just doesn't continue ⁠to sustain itself ... ​or the investment slows because people are worried they ​haven't seen the ‌gains yet."

(Reporting by ⁠Ann Saphir, ​Editing by Louise Heavens)