SAN FRANCISCO – In a recent statement, San Francisco Federal Reserve President Mary Daly emphasized the central bank’s cautious approach to monetary policy, indicating that it is too early to consider lowering interest rates. Daly pointed out that more evidence is needed to show a sustained decline in inflation towards the Fed’s 2% target before any rate cuts could be discussed.
The Federal Reserve is set to hold its next meeting on January 30-31, 2024, with expectations to maintain the benchmark interest rate steady. This stance comes despite recent months showing a significant drop in inflation and a robust labor market characterized by low unemployment rates. Policymakers remain watchful, seeking further confirmation of the downward inflation trend before making any policy adjustments.
Daly’s remarks reflect a broader sentiment within the Federal Reserve, which is to proceed with caution and ensure that inflation is on a consistent downward path before altering the current interest rate policy.
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