🏛 “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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