MNI BRIEF: Fed's Daly: 'Premature' To Say Rate Cuts Close

Federal Reserve Bank of San Francisco President Mary Daly on Friday pushed back against market expectations for interest rate cuts soon, saying she needs to see more evidence that inflation is sustainably headed toward 2% before adjusting rates. Her comments come soon after Chicago Fed chief Austan Goolsbee also indicated rate cuts aren't yet imminent.

"There's a lot of work left to do. We're not there yet, and it's far too early to declare victory," she said in a Fox Business interview. "It's really premature to think (rate cuts) are around the corner."

"Do I get consistent evidence that inflation is coming down? Or do I get any early signs that the labor market is starting to falter? Neither one of those right now is pushing me to make the adjustment is necessary," she said. (See: MNI INTERVIEW: Fed Might Not Cut At All In '24-Ex-Fed Economist)