MNI BRIEF: Fed's Daly-Have Entered 'Gradualist' Phase Of Cuts
MNI (WASHINGTON) - The Federal Reserve has entered a new phase in the monetary easing cycle where it can be more deliberate about deciding whether and how quickly to continue lowering interest rates, particularly in the face of firmer inflation data, San Francisco Fed President Mary Daly said Friday.
"The progress has slowed relative to what we had wanted, but that's a typical pattern," Daly told Bloomberg TV in an interview, adding this week's decision to cut rates by 25 basis points was a close call. "Now I feel that we've got that recalibration phase behind us. We can return to a more typical pattern of gradualism." (See MNI: Fed Inflation Fears Back On Rise Even Before Tariffs)
Daly said she is focused on existing data -- not forecasts about future economic policies -- to back the decision to cut but also the reduction in the median view for rate cuts next year down to just two from four in September.