Fed's Daly: Expect the Fed to continue cutting interest rates to prevent further weakening of the labor market

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On October 22, 2024, FOMC voter and San Francisco Fed President Daly said that the Federal Reserve is expected to continue cutting interest rates to prevent further weakening of the labor market. Daly said at the Wall Street Journal TechLive conference in Laguna Beach, California on Monday that "so far, I haven't seen any information indicating that we won't continue to lower interest rates. This is a very tight interest rate for an economy that has already embarked on a 2% inflation rate, and I don't want to see the labor market deteriorate further." She added that the goal is to achieve a "soft landing", with the inflation rate falling to 2% and the labor market remaining healthy, with wage levels keeping up with price increases. She said that as the inflation rate declines, the Federal Reserve needs to continue lowering the policy interest rate, otherwise it could make the policy overly tight and harm the labor market.

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