Fed's Daly leaves door open to bigger rate cut on further labor market weakness

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Fed's Daly leaves door open to bigger rate cut on further labor market weakness

Investing.com -- San Francisco Fed President Mary Daly on Monday reinforced expectations for a rate cut next month and suggested that a bigger rate cut remains on a monetary policy table should the labor market weaken further.

The remarks followed Fed Chairman Jerome Powell's message last week at Jackson Hole, Wyo., when he declared that"the time has come to adjust policy," providing a clear signal that rate cuts are ahead. Daly's remarks characterized the shift switch in focus at the Fed to weakness in the labor market compared with a few weeks ago, when she said in an Aug. 18 speech that the labor was slowing but was"not weak."

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Fed's Daly leaves door open to bigger rate cut on further labor market weaknessFed's Daly leaves door open to bigger rate cut on further labor market weakness
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