MNI BRIEF: Fed's Daly - Cutting Rates Too Soon Would Be Risky

San Francisco Federal Reserve President Mary Daly said Tuesday that there's little urgency to lower interest rates amid solid economic and job growth and it would be risky to loosen prematurely with inflation still a concern.

“The risk of cutting interest rates too soon is a real risk,” she said. "There is a path where interest rates start to adjust this year but we’re just not there yet." (MNI POLICY: Fed's Rate Cut Timeline Shaken By Inflation Bumps)

"There is no urgency to cut the rate," she said during a panel talk, adding the Fed's dot plot for three cuts this year remains reasonable but that is “a projection, not a promise.” Lingering lingering inflation is “a toxic tax on everyone," Daly said.