San Francisco Fed President Daly fully supports Fed's interest-rate cut, predicts more cuts ahead
San Francisco Federal Reserve Bank President Mary Daly expressed her full support for the U.S. central bank's recent half-point interest-rate cut. In an interview, Daly stated that she believes one or two more rate cuts are likely this year if the economy continues to evolve as expected.
Daly highlighted the downshift in the labor market and her confidence in inflation reaching the Fed's 2% goal. She emphasized the importance of aligning policy with the economy to avoid further slowing in the labor market.
According to Fed policymaker projections, most officials anticipate one or two quarter-point rate cuts at the remaining meetings this year, a sentiment that Daly shares. She believes that two more cuts or one more cut this year are within the range of possibilities based on her economic projections.
Despite some differing views among Fed policymakers regarding the September rate cut, Daly sees the current labor market, with an unemployment rate of 4.1%, as being at full employment.
Overall, Daly's remarks indicate a cautious approach to monetary policy, with a focus on supporting the economy and maintaining a favorable economic outlook.