San Francisco Fed President Daly expects rate cuts as labor market weakens | Real Time Headlines

San Francisco Fed President Mary Daly said on Monday she expects to cut interest rates later this year but declined to provide a timetable or magnitude for the central bank’s easing.

and Market expectations have been slashed Daly said that starting in September, progress on inflation and a significant slowdown in hiring may prompt the Fed to ease policy to a certain extent.

“There will be a need for policy changes in the next quarter. How much work needs to be done and when it will happen, I think a lot depends on the information that comes in,” she told a forum in Hawaii. “But in my view, we have now confirmed that the labor market is slowing, and it is extremely important that we don’t let it slow down so much that it goes into a downturn.”

This statement was published on the same day Wall Street suffers worst losses For nearly two years, investors have been grappling with concerns about slowing growth and the Federal Reserve’s reaction. in their Last week’s meetingFed officials hinted at an imminent rate cut but gave no specific details.

Over the next two days, there were consecutive weak reports on layoffs, manufacturing, and manufacturing. Create job opportunies Stirring fears that the Fed is moving too slowly.

As a constituent on this year’s rate-setting Federal Open Market Committee, Daly vowed that policymakers would take the necessary steps to achieve their economic goals.

“We will do everything we can to ensure that we achieve our goals of price stability and full employment,” she said. “As the economy provides data, we will make policy adjustments and we know what is needed.”

Earlier in the day, Chicago Federal Reserve Chairman Austen Goolsby told CNBC The central bank’s “restrictive” interest rate policy would make no sense if the economy wasn’t overheating, which he said was not the case. Goolsby said if the economy shows signs of trouble, the Fed will “fix it.”