San Francisco Fed President Mary Daly shared insights on the possibility of interest rate cuts in the U.S. Amid rising expectations, she stressed the importance of caution in decision-making.
Possibility and Timing of Interest Rate Cuts
Daly provided a detailed assessment of the Fed's future plans regarding interest rate cuts, urging that immediate action should not be anticipated. She suggested a responsive approach to reevaluating interest rates in light of economic developments.
Interest Rate Cuts and Political Pressures
At the time of these statements, Donald Trump was continuing to exert pressure on Fed policies in the United States. Financial circles widely believe Trump is openly urging an acceleration of interest rate cuts. In this context, Daly foresaw the possibility of up to two cuts within the year.
Transparency and Independence of the Fed
Emphasizing the importance of Fed's autonomous decision-making process, Daly highlighted that their focus would be on economic data rather than social and political influences. Her statements indicate the Fed's commitment to managing policy tools transparently and predictably.
Mary Daly’s recent declarations reveal that the Fed's decision-making processes will be grounded in economic data and insulated from political influences. Attention is being given to the alignment of market expectations with macroeconomic indicators.
