San Francisco Fed President Mary Daly emphasized a cautious approach to interest rate reductions. Given the current economic and labor market strength, coupled with persistently high inflation rates, she highlighted the lack of urgency to lower interest rate policy.
“The worst thing to do is act urgently when urgency is not required,” Daly remarked at an event.
Daly also expressed her reservations about the consequences of misjudging the necessary intensity of policy adjustments. She requires more evidence of inflation consistently moving towards 2% target before considering easing monetary policy.
