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

Quotable:

“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