Federal Reserve Bank of San Francisco President Mary Daly
- Fed
needs to cut policy rate because inflation is falling and the economy
is slowing - On size of September Fed rate cut, “we don’t know yet.”
- Daly says she needs more data, including Friday’s job market
report and CPI. - Fed must calibrate policy to the evolving economy.
- Labor market has softened but is still healthy, and that “has
to be sustained and protected.” - Hard to find evidence that labor market is faltering.
- Overly tight policy could mean additional, unwelcome labor market
slowing. - We have not restored price stability; inflation is still people’s
number one concern. - Businesses are being “frugal” on hiring, but not yet
“dusting off their layoff manuals.” - We are at an inflection point in the economy, and data will be
volatile. - Fed can take aggressive action when the outlook is clear, but the
current outlook is uncertain.
This article was written by Eamonn Sheridan at www.forexlive.com.
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