San Francisco Federal Reserve President Mary Daly has dismissed the need for a rapid 50-basis-point interest rate cut at the Fed’s September meeting, saying such a move would signal undue urgency given the current strength of the U.S. labor market.
Speaking to the Wall Street Journal, Daly said she sees no immediate need to “catch up” and prefers a gradual recalibration of monetary policy toward a more neutral stance over the next year. While supporting last month’s decision to hold rates steady, she acknowledged that inflation pressures have been lower than expected and job-market conditions have softened, which could justify a measured rate cut.
Daly’s remarks contrast with some Fed officials signalling openness to faster cuts, a position favoured by U.S. President Donald Trump. Meanwhile, Treasury Secretary Scott Bessent has pushed for rate reductions as the administration expands the list of candidates to succeed Fed Chair Jerome Powell to 11.
