Why Mary Daly Thinks Lower Rates Are Still on The Table

At the TechLive conference in Laguna Beach, California, Federal Reserve Bank of San Francisco President Mary Daly shared her thoughts on the future of interest rates. Daly believes that the Federal Reserve should keep reducing interest rates to protect the labor market from any further decline. She mentioned that there hasn't been any new information that suggests a halt in this rate-cutting process. The current interest rates are quite high for an economy aiming for 2% inflation, and Daly wants to ensure that the labor market doesn't worsen.This perspective highlights Daly's focus on maintaining economic stability and avoids the pitfalls of a struggling job market. By continuing to lower rates, she hopes to foster growth and prevent any potential downturns in employment. However, it's important to consider the long-term effects of such decisions and whether continuous rate cuts could lead to different economic challenges.