San Francisco Fed President Mary Daly indicated in an interview with the Financial Times that the time has come to consider gradually lowering interest rates from their current levels. Daly emphasized the importance of a cautious approach, stating, “Gradualism is not weak, it’s not slow, it’s not behind, it’s just prudent.”
She explained that while Fed aims to reduce the “restrictiveness” of its policy, it intends to maintain a level of restraint necessary to “fully get the job done” on inflation. Daly underscored the Fed’s focus on avoiding the risk of “overtightening into a slowing economy.”
