Fed’s Daly: Rate reductions on track, no signs to change course

San Francisco Fed President Mary Daly stated at a conference that she sees no indications that would prompt a halt in the gradual reduction of interest rates. Daly emphasized that the current rate remains “very tight” for an economy steadily progressing toward 2% target, adding that ” I don’t want to see the labor market go further.”

Reflecting on Fed’s September decision to cut rates by 50bps, Daly noted that it was a “close call” between opting for a half-point or quarter-point reduction. However, she stood firmly behind the larger cut.

Although she did not give clear guidance on the pace of future cuts, Daly affirmed that the Fed would “continue to adjust policy to make sure it fits the economy that we have and the one that’s evolving.”