Fed's Daly: One or two more Fed rate cuts likely this year
Federal Reserve Bank of San Francisco President Mary Daly said on Wednesday that she "fully" supported the Fed's half of a percentage-point interest-rate cut last month. Daly further stated that one or two more rate cuts this year are likely if the economy evolves as she expects, per Reuters.
Key quotes
Fully supported half-point rate cut.
Quite confident we are on path to 2% inflation.
We are at full employment.
With policy rate steady, real rate was rising.
Rising real rate was a recipe for overtightening and injuring the labor market.
Rate cut was a recalibration, to rightsize rates for the economy.
Size of September rate cut does not say anything about pace or size of next cuts.
Two or one more cut this year is what is likely.
We will watch data, monitor labor market and inflation.
We will make more or fewer adjustments to rates as necessary.
I do not want to see further slowing in the labor market.
Most firms are seeing a hybrid work situation, not a return to a 5-day-in-the-office situation.
I am not worried about accelerating inflation.
I was more worried about injuring the labor market.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.