MNI BRIEF: Fed's Daly Sees One Or Two More Rate Cuts This Year
MNI (-) - The Federal Reserve is likely to cut interest rates once or twice more this year, and the aggressive nature of the central bank's 50 basis point rate cut last month does not signal anything about the future path of cuts, San Francisco Fed President Mary Daly said Wednesday.
"Two more cuts or one more cut this year really spans the range of what is likely," Daly said during a moderated Q&A at Boise State University.
She said the larger 50 basis point move in September represented a recalibration of policy by a central bank that had been patient to cut and watched the conditions it set out for easing unfold.
"It doesn't tell you anything about the pace or magnitude of further adjustments. It just says that at that moment, with the economy we have, and the interest rate being at a historically high level, it was appropriate to take that 50 basis point adjustment, to get policy in line with the economy," she said. (See MNI: Job Boom Means Slower Fed Cuts, Pause Possible-Ex-Staff)