Fed's Daly: Sees three rate cuts in 2024
|San Franciso Federal Reserve (Fed) President Mary C. Daly hit newswires on Friday, speaking at the Annual National Association for Business Economics Economic Policy Conference in Washington, DC.
Key highlights
- Three rate cuts is a reasonable baseline for 2024.
- It's premature to think about just letting the economy run.
- The challenge in front of the Fed right now is that the labor market tends to be good until it suddenly isn't, Fed needs to look at other data.
- US labor market is cooling, but Fed's Daly doesn't see an imminent weakening in the job market.
- Fed policy is working, just need to see how much longer to get the job done.
- Doesn't see disruptions from quantitative tightening, appropriate to plan.
- Fed's Daly doesn't agree with the idea that the last leg of inflation will be the hardest.
- Fed can't wait for inflation to reach 2% before cutting rates.
- Fed's Daly doesn't see CRE being an imminent risk to financial stability.
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