Fed's Daly: Cutting Interest Rates Twice This Year Is Appropriate

BlockBeats News, August 16th. In an economic report showing stronger-than-expected retail sales last month and an unexpected surge in wholesale prices, 2027 FOMC voter and San Francisco Fed President Daly hinted during an interview that she is still prepared to begin easing policy as early as next month.

Daly stated that the labor market is softening, the economy is slowing down but not to a crawl, and with inflation still above the Fed's target, "there would be reasons to cut rates a couple of times this year. We'll wait for more data, maybe cut less, maybe cut more, but ultimately I think two cuts this year is still a good forecast. What I don't want to do is get overly worried that inflation could run up again or persist to the point where we aren't supporting the labor market while we wait for that to clarify." (FXStreet)