Central Banks

Fed’s Daly Says It’s Premature to Think Interest Rate Cuts Are Around the Corner

  • Need more evidence inflation is ‘consistently’ heading to 2%
  • San Francisco Fed chief says adjustment isn’t necessary yet

Mary Daly 

Photographer: Alex Kraus/Bloomberg
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Federal Reserve Bank of San Francisco President Mary Daly said it’s “premature” to think interest-rate cuts are around the corner, noting she needs to see more evidence that inflation is on a consistent trajectory back to 2% before easing policy.

“While I think it’s appropriate for us to look forward and ask when would policy adjustments be necessary so we don’t put a stranglehold on the economy, it’s really premature to think that that’s around the corner,” Daly said Friday in an interview on Fox Business.