🏛 “Three Rate Cuts May Be Necessary” – Fed’s Mary Daly Sounds the Alarm

🏦 In a pivotal shift, San Francisco Fed President Mary Daly has signaled that the U.S. central bank may need to implement up to three rate cuts to align with changing economic conditions.

🔍 Key Insights from Daly’s Statement:

📉 Labor market is softening — only 73,000 jobs added in July, unemployment now at 4.2%

💡 Policy inaction could become “misaligned” with economic realities

📊 Rate cuts planned in June still make sense, but more may be needed if job weakness persists

🛑 Concerns over inflation from tariffs? Daly says no supporting data

📢 “Every Fed meeting from now on must weigh the case for a cut,” she emphasized

📊 The Fed is now in a delicate “tradeoff space” — balancing inflation control with the need to support employment. Daly’s comments highlight growing urgency to act before the window closes.

🔍 What does this mean for markets, investors, and businesses?

Time to reassess strategies as policy pivots may be coming sooner than expected.

#FederalReserve #InterestRates #Economy #MonetaryPolicy #Inflation

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