MNI BRIEF: Fed Recalibration Needed, Then Gradualism - Daly

MNI (WASHINGTON) - San Francisco Fed President Mary Daly said an interest-rate cut is on the table for this month but isn’t a certainty, while also suggesting the need for further recalibration that will eventually slow as the economy moves back towards the bank's inflation and employment goals. 

"When I'm talking about the policy rate today, you have to think about both the level of the rate and the pace at which you might get to neutral," she said Friday in Q&A at a Stanford University Hoover Institution event, noting "tremendous progress on inflation" and calling the labor market balanced. (See MNI INTERVIEW: Fed Closer To Slowing Rate Cut Pace-Kaplan)

"Right now, I'm focused on - is the level of policy right to wait and see?" she said. "After that, I would be very comfortable, unless the data changed, with a more gradual approach to policy adjustments."