Fed’s Daly: One or two more Fed rate cuts likely this year

Federal Reserve Bank of San Francisco President Mary Daly

• Fully supported half-point rate cutQuite confident we are on path to 2% inflationWe are at full employmentWith policy rate steady, real rate was risingRising real rate was a recipe for overtightening and injuring the labor marketRate cut was a recalibration, to rightsize rates for the economySize of September rate cut does not say anything about pace or size of next cutsTwo or one more cut this year is what is likelyWe will watch data, monitor labor market and inflationWe will make more or fewer adjustments to rates as necessaryI do not want to see further slowing in the labor marketMost firms are seeing a hybrid work situation, not a return to a 5-day-in-the-office situation

This article was written by Eamonn Sheridan at www.forexlive.com.