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San Francisco Fed president Mary Daly: We want to finish the inflation fight

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San Francisco Fed president Mary Daly: We want to finish the inflation fight


Listen and subscribe to Opening Bid on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.

The market is spooked by an inflation-concerned Fed not smashing the pedal down to slash rates and appease bullish investors.

The vibe is not lost on San Francisco Fed president Mary Daly, seen often as a policy dove who’s a voting member on the FOMC this year.

“Well, it was a close call, frankly, and it took a lot of deliberation as it often does with myself and my team, and then also with the FOMC participants. Ultimately, I decided that it was appropriate to reduce [interest rates] 25 basis points — that will be 100 basis points of recalibration. And I see that as right-sizing the policy rate level to the economy,” Daly said on Yahoo Finance’s Opening Bid podcast (video above).

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Added Daly, “So I see the recalibration period now as completed. We now are back to the time we can make our decisions more slowly. Data-dependent, using the data to affect the incoming forecast and, you know, determine how many rate cuts we’ll ultimately do next year. We’ll have to be agile and data-dependent.”

On Wednesday, the Federal Reserve reduced interest rates by 25 basis points to a range of 4.25% to 4.5%. It marked the Fed’s third straight rate cut of 2024, which began with a blast — a 50 basis point reduction on Sept. 18.

Daly voted for the reduction in interest rates. The lone dissenting vote — a rarity under the Jerome Powell-led Federal Reserve — was newly appointed Cleveland Fed president Beth Hammack.

Hammack preferred not to cut interest rates.

“I mean, we might get really positive inflation news and we’ll react to that if we do. But I do think that we want to make sure we finish the job,” said Daly, who noted getting inflation to 2% helps build trust and credibility for the Fed.

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“So we are resolute to get that job done and that will mean restricted policy through the year [in 2025] in all likelihood.”

San Francisco Fed president Mary Daly talks with Yahoo Finance executive editor Brian Sozzi on the outlook for Fed policy on Yahoo Finance’s Opening Bid vodcast. · Yahoo Finance

But what spooked a market that has been bidding up Big Tech stocks such as Apple (AAPL) and Meta (META) with reckless abandon in December was the Fed not committing to aggressive rate cutting in 2025.

The consensus among Fed officials is now for two rate cuts next year, down from the four forecast in September. The outlook for inflation is further clouded by potential moves by the incoming Trump administration, such as possible tariffs on China.

The Dow Jones Industrial Average promptly finished Wednesday’s session down more than 1,100 points. Stocks stabilized Thursday and Friday, with the latter supported by a slower increase than expected on the Personal Consumption Expenditures (PCE) index.

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Executive chef of new buzzy San Francisco restaurant Bourbon Steak visits ABC7

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Executive chef of new buzzy San Francisco restaurant Bourbon Steak visits ABC7


SAN FRANCISCO (KGO) — ABC7 got in the holiday spirit Monday with the executive chef of San Francisco’s buzziest restaurants that just opened in October — to a lot of fanfare.

We’re talking about Bourbon Steak, inside the Westin St. Francis Hotel.

Legendary celebrity chef Michael Mina’s latest opening brings him back to San Francisco, and everyone came to celebrate: a cable car, Mayor Daniel Lurie, and Warriors superstar Stephen Curry — a partner in this venture who created the bourbon bar Eighth Rule inside the restaurant.

But they’re not just about style. They are first and foremost about steaks.

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Because they are on the menu for so many holiday gatherings, we are delighted that Bourbon Steak executive chef Kevin Schantz joined us on ABC7’s “Midday Live.”

Watch the full interview in the player above.


If you’re on the ABC7 News app, click here to watch live

Copyright © 2025 KGO-TV. All Rights Reserved.

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Thousands in one San Francisco neighborhood heading into another day without power

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Thousands in one San Francisco neighborhood heading into another day without power


While many people in San Francisco have their power back, there are still thousands without it.

At a press conference Monday afternoon, Mayor Daniel Lurie said 4,000 PG&E customers in the Civic Center area are still in the dark. One of them is Parvathy Menon. 

“We haven’t been able to take showers or use the bathroom,” said Menon. “Our electricity is out. I think all our food started rotting about a day in.”

She lives at 100 Van Ness. She said she’s grateful she’s going out of town tomorrow, but even that’s posing some problems.

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“I actually have to pack for a trip tonight, and we’re doing it in full darkness,” Menon explained. “We are using our phone lights, we are using our laptops to charge our phones.”

Her apartment is pitch black, except for the small amount of streetlight coming through the windows. She said the apartment complex has been doing all they can to help, like providing some food and water.

They have a small generator to power some lights in the lobby and one elevator for the nearly 30-story apartment building.

Menon said she is most upset about the lack of communication from PG&E.

“Initially, when this started, we were supposed to get power back within the day, then it went to the next day and now they just stopped calling us completely,” said Menon.

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San Francisco City Hall was closed for the day because of the outage, but Mayor Daniel Lurie held a press conference with Supervisors Matt Dorsey and Bilal Mahmood.

Lurie said what residents have gone through is unacceptable, and he’s lost trust in PG&E’s estimated times for repair.

“They gave us a timeline that they believe in, but it’s not one that I can have confidence in any longer,” Lurie said. “So, we don’t have full faith that 6 a.m. is the time tomorrow.”

“Shame on PG&E for having this happen,” said District 6 Supervisor Matt Dorsey. “This is a company that has had a lot of reliability issues and the jury is out on what happened, but if this is negligence, I think it’s going to be really important for people to understand they have rights as customers.”

Leaders encourage everyone who lost anything to file a claim with PG&E; they could be eligible for reimbursements. Mahmood is calling for a hearing after the new year to get some answers for PG&E.

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“What went wrong, why weren’t they able to address it this weekend and what steps are they taking to make sure this doesn’t happen again,” said Mahmood about the question he has for the utility company. 

PG&E said the outage happened after a fire at its Mission Street substation left significant damage, but the cause is still under investigation.

Meanwhile, Menon has been refreshing social media looking for good news, but she’s starting to lose faith.

“They’re really doing nothing to help us here, so I’m losing hope,” said Menon. 

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San Francisco blackout: What we know

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San Francisco blackout: What we know


A fire at a Pacific Gas & Electric substation in SoMa knocked out power to as many as 130,000 customers starting Saturday, leaving thousands in the dark heading into the holiday season and a week of intense storms. Here’s what we know about the outage and state of restoration.

What happened?

The fire began shortly before 1:10 p.m. Saturday at PG&E’s Mission substation at Eighth and Mission streets, initially affecting 40,000 customers. As firefighters worked to suppress the blaze, crews de-energized additional portions of the electric system for safety, causing outages to peak at approximately 130,000 customers.

The fire damaged critical equipment, including a circuit breaker — a safety switch designed to de-energize the system when problems are detected. Firefighters faced unusual complexities suppressing the fire in the multilevel building, including ventilating carbon monoxide before crews could safely enter.

When did power come back?

Firefighters made the building safe for PG&E crews to enter by 6:15 p.m. Saturday. Restoration efforts began immediately. Nearly 32,000 customers were reconnected by 8:45 p.m. Saturday, and about 100,000 — roughly 75% of those affected — were up by 9:30 p.m.

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By noon Sunday, 90% of affected customers had power restored. PG&E initially projected full restoration by 2 p.m. Monday; however, a spokesperson said the utility was extending restoration times (opens in new tab) for the remaining 4,400 customers without power. No time frame has been announced.

A PG&E map Monday afternoon shows lingering outages in the Civic Center and SoMa neighborhoods, as well as scattered pockets in the Outer Sunset and Marina District. | Source: Courtesy PG&E

What sparked the fire?

PG&E says it doesn’t know. COO Sumeet Singh said Monday that the extensive equipment damage makes it difficult to determine a root cause. The utility has hired Exponent, a Bay Area-based engineering firm, to conduct an independent investigation.

“We will determine what occurred to ensure it never happens again,” Singh said at a press conference outside the damaged substation.

Was the equipment properly maintained?

PG&E completed preventative maintenance at the Mission substation in October and conducted its most recent bimonthly inspection Dec. 5. Singh said neither inspection identified any problems.

A man wearing a PG&E hard hat and safety vest speaks at a microphone stand with various news outlet logos, while others in safety gear stand behind him.
PG&E COO Sumeet Singh offers an apology Monday outside the damaged substation at Eighth and Mission streets. | Source: George Kelly/The Standard

Why were the estimated restoration times wrong?

Many customers were irate as they were repeatedly given estimated restoration times that came and went. Singh acknowledged the failure and said PG&E’s estimation systems typically perform well, with more than 91% accuracy systemwide.

“It obviously did not work effectively in the circumstance over this weekend,” Singh said. “We are committed to understanding exactly what happened, why it happened, and owning the fixes.”

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Were other substations damaged?

Residents have observed a large presence of workers at a substation at 24th Avenue and Balboa Street since Sunday, but the utility has not shared details on what is being done there.

Six hulking diesel generators, which one worker said cost $600,000 to operate daily, were parked outside the substation Monday afternoon. The generators are needed to feed power to the grid while both substations are not fully operational. Crews said they are expected to run for at least two to three days.

Two workers said the substation is undamaged and still online, but its output is diminished because it is fed power by the much larger substation at Eighth and Mission.

However, another said one of the substation’s transformers blew out after a power surge following the fire, and the generators are needed to compensate while workers “update the system” of the west-side substation.

How will customers be compensated?

PG&E plans to offer an expedited claims process for affected customers to seek compensation for losses, including spoiled food, lost business revenue, and hotel costs. Singh said details will be available soon on the utility’s website and through customer service.

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He declined to specify compensation limits or provide immediate financial relief, saying customers would need to file claims that PG&E would process quickly. The utility opened a community resource center in the Richmond and partnered with 211 to provide hotel accommodations and food vouchers for vulnerable customers.

Could this happen again?

Singh said PG&E has identified no vulnerabilities at other substations and has made significant upgrades systemwide. Two strong storms forecast for Tuesday and Wednesday (opens in new tab) could bring 4 to 10 inches of rain to Northern California; he said more than 5,500 PG&E workers and contractors are positioned to respond.

The outage occurred 22 years to the day (opens in new tab) after a mass blackout at the same substation in 2003, raising questions about aging infrastructure that Singh did not directly address.



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