Federal Reserve’s Mary Daly Discusses Borrowing Costs

(Reuters) – Mary Daly, President of the San Francisco Federal Reserve Bank, stated it is time to consider adjusting borrowing costs from the current range of 5.25% to 5.5% during an interview with the Financial Times published on Sunday.

“Gradualism is not weak, it’s not slow, it’s not behind, it’s just prudent,” Daly remarked, highlighting that the labor market, although slowing, remains “not weak.”

Earlier this month, she mentioned it is too early to determine if the July jobs report indicates a slowdown or actual weakness, stressing the importance of preventing a downturn in the labor market. Daly expressed increased confidence that inflation will move toward the 2% target.

Fed Chair Jerome Powell is scheduled to speak on the economic outlook on Friday during the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming.