Federal Reserve Bank of San Francisco President Mary Daly says the Federal Open Market Committee (FOMC) needs to take a gradual approach to lowering borrowing costs.
Financial Times with the front page piece:
The FT is gated, but in (very) brief from the report on the interview:
- Daly calls for "prudent" approach to lowering rates
- pushes back on concerns of sharp economic slowdown
- recent data gives "more confidence" inflation is under control
- no need for dramatic response to weakening labor market
If you want more you can head to the FT twitter account where you can basically read the article from the pic.
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Thre is nothing surprising from Daly here. The messages we've been getting are that the Fed is likely to move cautiously on rate cuts, while they watch incoming data closely.
Powell's Jackson Hole speech on Friday will be closely watched for any further policy clues he may drop into the mix.
