Fed’s Daly: Unsure on next cut, economy still needs policy bridling

San Francisco Fed President Mary Daly said she “fully supported” last week’s rate cut and expects more reductions will likely be needed. However, at an event overnight, she stressed that the timing for further cuts remains uncertain.”It’s hard to say”, she said.

Daly described the labor market as no longer solid but not weak either, calling it “sustainable.” She said she does not want to see further softening, noting that the Fed’s latest decision was effectively an “insurance” move to support jobs while inflation continues to moderate.

The economy, she added, still requires “monetary policy bridling, but not as much as we had.”