Fed’s Daly: We “will still be quite restrictive even if we [cut] three times next year.”

Daly is out with comments in the WSJ

  • It’s too soon to speculate at which meetings the Fed might change policy stance next year
  • Her projections are very close to Fed median
  • We’re acknowledging progress is there
  • When the unemployment rate starts to rise, it tends to go up by a lot and not by only a little bit
  • We have to be forward looking and make sure that we don’t give people price stability but take away jobs
  • we could over-tighten quite easily, and so that’s what I’m mindful of


“There is more work to do, and at this point, that work includes not only focusing on bringing inflation down to 2%…but also recognizing that we want to continue to do this gently, with as few disruptions to the labor market as possible”

Daly is a voter in 2024.

Link here.

This article was written by Adam Button at www.forexlive.com. Source