SF Fed President Mary Daly
- Is cautiously optimistic about growth
- Fed has been able to get inflation down without a major disruption
- Inflation retreat has been broad-based
- Fed funds rate is a long way from where it's likely to settle
- 3% rate may be around neutral
- Neutral rate is higher than what it once was
- Lack of dissents don't mean Fed officials fully agree
- Inflation points are likely to cause more dissents
The bolded is a strong hint that cuts are on autopilot.
More:
- If forecast met, she sees one or two rate cuts this year
This comment surprises me because it validates fears about a Fed pause.