San Francisco Fed President Mary Daly said she supported last week’s rate cut and will approach the December meeting with “an open mind”. She believed it was “appropriate to take another bit off the policy rate,” while emphasizing that the central bank must now gauge whether the 50 basis points of easing delivered this year are sufficient to guard against further weakness in hiring.
She noted that incoming data, including state-level jobless claims, suggest the labor market is not on a “precipice,” with conditions still stable despite slower momentum. Inflation, she said, is running near 3%, indicating progress but not yet a full return to target.
Daly added that FOMC participants often hold diverse views ahead of meetings, but consensus tends to emerge as new data clarify the outlook.
