Federal Reserve's Daly: The time for interest rate cuts has come

ChainCatcher news, San Francisco Fed President Daly stated that she believes it is appropriate for the Federal Reserve to begin cutting interest rates. In an interview on Monday, Daly said, "The labor market has achieved full balance. The time to adjust policy has come." This view echoes the remarks made by Fed Chairman Powell last week, who expressed confidence that inflation is on the path to returning to 2% during the Jackson Hole symposium, also stating that "the time to adjust policy has come."

Daly emphasized that the Fed must bring inflation down to the 2% target, but she and her colleagues will also strive to prevent restrictive policies from harming the labor market.