Connect with us

Hi, what are you looking for?

Top Stories

Fed’s Mary Daly Signals Potential for More Than Two Rate Cuts

Mary Daly, President and CEO of the Federal Reserve Bank of San Francisco, speaks during WSJ Tech Live conference hosted by the Wall Street Journal at the Montage Laguna Beach in Laguna Beach, California, on October 21, 2024. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images) US-TECH

UPDATE: San Francisco Federal Reserve Bank President Mary Daly has just announced that the time for potential interest rate cuts is rapidly approaching, with indications that the U.S. job market is softening. In a statement made on Monday, Daly emphasized that the Fed may need to consider more than the previously anticipated two rate cuts this year.

The Federal Reserve recently maintained short-term borrowing costs between 4.25% and 4.50% during last week’s meeting, a decision that left some policymakers, including a few of her colleagues and President Trump, advocating for immediate cuts. “I was willing to wait another cycle, but I can’t wait forever,” Daly stated, stressing the urgency of reevaluating the Fed’s approach in light of new economic data.

Daly noted that although a rate cut in September is not guaranteed, she believes that every upcoming meeting will be critical for policy adjustments. “I would lean to thinking that every meeting going forward is a live meeting,” she said, highlighting the importance of monitoring economic indicators closely.

The latest labor market data reveals a concerning trend: the Labor Department reported that U.S. employers added only 73,000 jobs last month, significantly lower than prior expectations. Additionally, previous job growth figures were revised sharply downward, indicating just 33,000 jobs were added in the two preceding months. This data points to a potential weakening in the job market that could necessitate a shift in monetary policy.

Further complicating the economic landscape, the unemployment rate ticked up slightly to 4.2% in July. Despite this, Daly urged caution, stating that raw employment numbers may not be the only indicators to consider. Instead, she pointed to a broad dashboard of labor market measures that suggests “evidence after piece of evidence” showing significant softening compared to last year.

Daly warned that if inflation persists or if the labor market rebounds unexpectedly, the Fed might need to adjust its strategy. “We could do fewer than two (rate cuts) if inflation picks up,” she said, but also noted, “I think the more likely thing is that we might have to do more than two.”

In her analysis, Daly concluded that the Fed is navigating a delicate balance between stimulating economic growth and controlling inflation. She expressed concern that if the Fed delays necessary actions, it could lead to being “for sure too late” to make effective changes.

As the Fed gears up for its next policy-setting meeting in September, all eyes will be on upcoming economic reports. Investors, businesses, and consumers alike are eager to see how the Fed will respond to these shifting economic conditions.

What’s Next: The financial community will be closely monitoring labor market and inflation reports ahead of the September meeting, as these could significantly influence the Fed’s decision-making process. With a potential shift in interest rate policy looming, the implications for both the economy and everyday Americans could be profound.

Stay tuned for further updates as this situation develops.

You May Also Like

Lifestyle

Shares of **Amerant Bancorp** (NYSE:AMTB) received an upgrade from Wall Street Zen on March 10, 2024, transitioning from a hold rating to a buy...

Sports

The UFC event in Abu Dhabi on July 26, 2025, featured a record-breaking performance from Steven Nguyen, who achieved an unprecedented feat by knocking...

Top Stories

UPDATE: Sydney Sweeney’s Baskin-Robbins advertisement is making waves online as backlash intensifies over her recent American Eagle campaign. Just days after critics condemned the...

Top Stories

BREAKING: The historic Durango-La Plata Aquatic Center, a cornerstone of community recreation since its opening in August 1958, is facing imminent demolition as part...

Business

An off-Strip casino in Las Vegas has unveiled Nevada’s latest sportsbook, Boomer’s Sports Book, as part of a substantial renovation. The new facility opened...

Top Stories

URGENT UPDATE: Affordable motorcycle helmets under ₹1000 are now available for safety-conscious riders across India. With road safety becoming a pressing issue, these helmets...

Sports

The Las Vegas Aces secured a convincing victory over the Los Angeles Sparks, defeating them 89-74 on March 12, 2024, at Crypto.com Arena. This...

Health

The ongoing impact of poverty on children’s health has prompted urgent calls for action from mental health advocacy groups. With a notable rise in...

Sports

As the 2025 NFL season approaches, fantasy football enthusiasts are gearing up for their drafts, particularly focusing on tight ends. With players like Brock...

Technology

Polish cyclist Michał Kwiatkowski returned to competitive racing on Saturday at the Clásica San Sebastián, marking his first event in 141 days following a...

Health

Translucent, an innovative start-up specializing in artificial intelligence, has secured $7 million in seed funding to enhance its technology aimed at helping healthcare organizations...

Science

A unique exploration of adult film production has emerged through the lens of photographer Larry Sultan, who documented the ordinary suburban homes transformed into...

Copyright © All rights reserved. This website provides general news and educational content for informational purposes only. While we strive for accuracy, we do not guarantee the completeness or reliability of the information presented. The content should not be considered professional advice of any kind. Readers are encouraged to verify facts and consult appropriate experts when needed. We are not responsible for any loss or inconvenience resulting from the use of information on this site.