San Francisco Federal Reserve Bank President Comments

(Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Monday stated that there is no indication the U.S. central bank will cease cutting interest rates, which are "absolutely" still high enough to restrain the economy.

Daly, in a webcast interview with the Wall Street Journal, emphasized the goal of achieving a "soft landing" where inflation cools to 2%, the labor market remains healthy, and wages align with rising prices.

She highlighted the necessity for the Fed to continue lowering the policy rate as inflation decreases, warning that stagnating policy could unduly tighten conditions and negatively impact the labor market.

Following the Fed's 50-basis-point rate cut last month, the policy rate now ranges from 4.75% to 5%. Daly suggested that a policy rate of around 3% would be considered neutral, balancing between tight and loose monetary conditions.