Federal Reserve's Daly: Further Rate Cuts May Be Needed

BlockBeats News, September 25th - San Francisco Fed President Daly said on Wednesday that she "fully supports" the Fed's rate cut decision last week and indicated that further rate cuts may be needed in the future. Daly discussed the Fed's rate cut last week, stating: "Economic growth, consumer spending, and the labor market have all slowed, while inflation has remained below expectations, mainly concentrated in industries directly affected by tariffs.

Economic risks have shifted, and it is time to take action. Looking ahead, further policy adjustments may be necessary to support the labor market while achieving price stability." However, she added that the Fed's projections are not commitments, and its goal remains to maintain maximum employment and price stability. Daly had previously stated that two 25-basis-point rate cuts this year were a reasonable forecast, and on Wednesday, she did not update this view. (FXStreet)