Federal Reserve's Daly: The time for rate cuts has arrived

San Francisco Fed Chair Daly stated that she believes it is appropriate for the Federal Reserve to start cutting interest rates. "The labor market has achieved full balance. The time for policy adjustment has come," Daly said in an interview on Monday. This view echoes the remarks of Federal Reserve Chairman Powell last week, who expressed his confidence at a Jackson Hole symposium that inflation is on its way back to 2%, also stating "the time for policy adjustment has come."

Daly emphasized that the Fed must bring inflation down to a target of 2%, but she and her colleagues will also strive to prevent restrictive policies from damaging the labor market.