Crispr Therapeutics shares tumble after significant earnings miss
Investing.com -- San Francisco Federal Reserve Bank President Mary Daly indicated Monday that the time for interest rate cuts is approaching as evidence mounts that the U.S. job market is weakening, according to a report from Reuters.
"I was willing to wait another cycle, but I can’t wait forever," Daly said regarding the Fed’s decision last week to maintain short-term borrowing costs in the 4.25%-4.50% range rather than cut them.
While not committing to a September rate cut, Daly emphasized that "every meeting going forward is a live meeting to think about these policy adjustments."
The Fed official stated that the two quarter-point interest rate cuts that policymakers projected in June for this year still "look to be an appropriate amount of recalibration." She added that the timing of these cuts across meetings was less important than ensuring they happen.
Daly is keeping an open mind as several labor market and inflation reports are due before the Fed’s September policy meeting. She noted that the Fed could implement fewer than two cuts if inflation increases, but suggested a different scenario might be more probable.
"I think the more likely thing is that we might have to do more than two," Daly said, adding that the Fed "should be prepared in my judgment to do more if the labor market looks to be entering that period of weakness and we still haven’t seen spillovers to inflation."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.