Fed’s Daly: Three rate cuts this year seems “reasonable”
|Federal Reserve Bank of San Francisco President Mary Daly mentioned on Tuesday that we must assess the duration for maintaining rates at their current level. She added that inflation is gradually decreasing, though the process is erratic and gradual. Daly noted that while there's no immediate need to modify the rate; maintaining the status quo is the appropriate policy at present. She also argued that progress is being made, but there's a noticeable supply and demand disparity in the housing market. The economy is showing signs of improvement, and while there's a trajectory where interest rates begin to adjust this year, we haven't reached that point yet.
Extra quotes
“There's a 'real risk' of cutting rates too soon.”
“If we lock inflation in at this level, that's a 'toxic tax'.”
“We want to fully bring inflation back to 2%.”
“3 rate cuts this year is 'reasonable' baseline.”
“Projection of 3 rates cuts is not a promise.”
Market Reaction
The Greenback appears unfazed by today’s set of Fedspeakers and keeps trading on the defensive around the 104.80 zone.
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