Mary Daly, the President of the Federal Reserve Bank of San Francisco, affirmed the Federal Reserve's commitment to its 2% inflation target despite a recent surge in energy prices. During an interview with Bloomberg, she noted that there are no current signs indicating that rising energy costs are influencing medium- or long-term inflation expectations. Daly described the Fed's monetary policy as 'slightly restrictive', suggesting that existing interest rates are effectively applying downward pressure on inflation. She highlighted that the wording of the Fed's policy statements is less critical than the actual decisions made by the rate-setting committee. Furthermore, Daly mentioned that a resolution to the ongoing U.S.-Iran conflict could help stabilize energy markets and ease inflationary pressures, reinforcing the Fed's cautious approach to inflation management as it evaluates economic data and geopolitical developments.