Fed’s Mary Daly Sparks Market Optimism

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San Francisco Fed President makes unexpected comments on slowing the pace of interest rate hikes. US economy shows signs of slowdown. Risk assets gain as US dollar index weakens.

Federal Reserve Bank of San Francisco President Mary Daly who has consistently reaffirmed the central bank’s commitment to curb inflation by raising interest rates, surprised investors by stating that the time has come “to start talking about stepping down” the pace of rate hikes. Daly’s comments were taken as an indication that the magnitude of further interest rate hikes could soon diminish.

Her comments came a day before the Federal Reserve began its blackout period ahead of the November 1-2 monetary policy meeting. Daly’s observations also came ahead of the latest round of

 

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