Federal Reserve Bank of San Francisco President Mary Daly
- Fully supported half-point rate cut
Quite confident we are on path to 2% inflation
We are at full employment
With policy rate steady, real rate was rising
Rising real rate was a recipe for overtightening and injuring the labor market
Rate cut was a recalibration, to rightsize rates for the economy
Size of September rate cut does not say anything about pace or size of next cuts
Two or one more cut this year is what is likely
We will watch data, monitor labor market and inflation
We will make more or fewer adjustments to rates as necessary
I do not want to see further slowing in the labor market
Most firms are seeing a hybrid work situation, not a return to a 5-day-in-the-office situation
