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Fed’s Daly Talks on US Economy and Interest Rates as Bitcoin Surges

Author: Content Editor
San Francisco Fed President Mary Daly spoke at an event, confirming that despite a recent rate cut, the Fed's monetary policy is effectively reducing inflation. The rate cut was deemed necessary to balance inflation reduction with the need to control economic growth. Daly referred to it as a "right-sizing" of interest rate policy, stating that policy remains restrictive and the Fed continues to put downward pressure on inflation to meet its target. Daly emphasized the importance of achieving the target inflation rate, particularly with a labor market characterized by full employment. The decision to cut rates was based on easing inflationary pressures and emerging risks to the labor market, but stronger-than-expected September hiring figures have raised questions about future rate cuts. Daly expressed optimism about the state of the economy, noting significant easing of inflationary pressures and stabilization in the labor market. The unemployment rate of 4.1% is in line with the long-term average, suggesting labor market conditions are close to pre-pandemic levels. Daly also highlighted the Fed's efforts to reduce inflation while managing employment levels as paying off.

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