Fed's Daly: It's time to consider rate cuts
Odaily News: FOMC voter Dai recently stated that the latest economic data has given her "more confidence" that inflation is under control. It is now time to consider adjusting the current interest rate range of 5.25%-5.50%. Although the labor market is slowing, it is "not weak." She also said that the Federal Reserve does not want to "tighten monetary policy too much during an economic slowdown." She added that failing to adapt policy to progress on inflation and a slowdown in economic growth "could lead to an outcome we don't want, which is price stability but an unstable, shaky labor market." Her remarks are consistent with those of Atlanta Fed President Bostic, who recently said that waiting too long to cut rates "does indeed carry risks." The weak July employment report has raised concerns about the health of the U.S. economy and has to some extent triggered a global stock market sell-off. Dai said that companies generally do not resort to layoffs. Instead, they are now cutting discretionary spending to adapt to a "bubble world" that is no longer "unrestrained growth."
