Federal Reserve Bank of San Francisco President Mary Daly comments reported via Reuters:
- Comfortable with Fed’s July decision, less comfortable in making that same decision again and again
- Two rate cuts this year still seem to be appropriate amount of recalibration
- May do fewer than two rate cuts; more likely thing is we need to do more
- Every meeting going forward is ‘live’ for thinking about policy adjustments
- On July Fed decision, I was willing to wait another cycle, but can’t wait forever
- Still a lot of uncertainty over whether Sept rate cut would be appropriate
- Job market not precariously weak, but it is softening and further softening would be unwelcome
- Seeing no indication of persistent tariff effect on inflation
- Can’t wait to be certain there is no inflation persistence, need to make a call based on what’s
Daly leaning a little more dovish with these remarks. Daly noted that a September rate cut is not a lock yet, indeed “Still a lot of uncertainty over whether Sept rate cut would be appropriate” but the comments as a whole suggest she’ll be sooner rather than later.
Over the weekend I posted remarks from NY Fed Head Willaims that I have not seen much on at all. Make sure you are aware of them:
- Fed’s Williams say’s he’ll have “very much an open mind” on September meeting rate cut
- Weekend Fed Williams – “very much an open mind” on September rate cut. I have comments!
This article was written by Eamonn Sheridan at investinglive.com.