Fed’s Daly: Rate cuts could be needed next year to prevent over-tightening – WSJ
|San Francisco Federal Reserve (Fed) President Mary Daly said on Monday that interest rate cuts could be needed in 2024 to prevent over-tightening. In an interview with the Wall Street Journal, Daly added that more rate cuts could be appropriate if inflation falls faster and that fewer cuts would be warranted if progress in inflation stalls.
Daly, a voter in 2024, mentioned that her economic projections were very close to the FOMC median.
Market reaction
The US Dollar Index is hovering around 102.50, consolidating Friday’s rebound from multi-month lows. US Treasury yields rose on Monday, however the 10-year yield remains under 4.0%.
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