MNI BRIEF: Fed’s Daly: Time To Cut Interest Rates Is Now
MNI (WASHINGTON) - San Francisco Fed President Mary Daly said Monday the central bank is ready to start cutting interest rates as the disinflation process has proved more durable.
“We just needed to get a little more confidence inflation is truly on its path to 2%, and I wanted to see the labor market come into balance. But I think that's completely happened, and the risks to our goals are now balanced, and the time to adjust policy is upon us,” she told Bloomberg TV in an interview. “The direction of change is down, and the time to adjust is now.”
She said the Fed must be mindful of downside risks to the employment side of its mandate but that there’s no major sign of deterioration yet. “We’re not hearing signs that firms are poised for layoffs,” she said. (See MNI INTERVIEW: Fed Likely To Make A Series Of 25BP Cuts- Blinder)