Fed's Daly: Time to Cut Interest Rates Has Come

On August 27th, Jinshi data reported that Daly, the president of the Federal Reserve Bank of San Francisco, said that she believes it is appropriate for the Fed to start cutting interest rates. Daly said in an interview on Monday: “The labor market has achieved full balance. The time to adjust policies has come.” This view echoes the remarks of Fed Chairman Powell last week. Powell said at the Jackson Hole Symposium last week that he is confident that the inflation rate is returning to the path of 2%, and also said that “the time to adjust policies has come.” Daly emphasized that the Fed must lower the inflation rate to the target of 2%, but she and her colleagues will also work to prevent restrictive policies from damaging the labor market.