San Francisco Fed President Mary Daly signaled that the December 9–10 FOMC meeting remains a genuine live decision, saying it is “premature to say definitely no cut, or definitely a cut.” Daly stressed she has “an open mind” and has not reached a final view.
While Daly reiterated that the overall direction of policy is downward, she cautioned that the exact timing of the next move hinges on the incoming data. Recent acceleration in services inflation complicates the picture, as the Fed’s 50bps of cuts earlier this year have helped stabilize the labor market by cooling wage pressures and supporting job demand.
Daly said policymakers must “collect more information” before making any call on December, noting that the Fed faces risks on both sides of its dual mandate.
