MNI BRIEF: December Fed Cut 'Absolutely Not' Off Table - Daly
MNI (WASHINGTON) - A December interest rate cut is "absolutely not" off the table despite recent bumpy progress in bringing inflation back to 2%, as the Fed's benchmark overnight rate remains well above her estimate of neutral at around 3%, Federal Reserve Bank of San Francisco President Mary Daly said Tuesday.
"In order to keep the economy in a good place, we have to continue to recalibrate policy now, whether it'll be in December or sometime later. That's a question we'll have a chance to debate and discuss at our next meeting. But the point is, we have to keep policy moving down to accommodate the economy, because we want a durable expansion with low inflation," she said in a Fox Business interview.
Daly added she won't consider the impact of President-elect Donald Trump's promise of imposing high tariffs on imports until the policies are in place. "We've had trade issues in tariffs before, and the economy adjusts, and it doesn't usually derail growth," she said. (See: MNI INTERVIEW: Fed Closer To Slowing Rate Cut Pace - Kaplan)