Daly's remarks reveal the current core contradiction of the Federal Reserve: how to address the structural turning point in the labor market while inflation is not yet fully under control.
Her advocacy for a "gradual shift to a neutral interest rate over the next year" is essentially a trade-off of time for space—injecting liquidity into the economy through multiple small rate cuts while avoiding a repeat of the market turmoil triggered by aggressive rate cuts in September 2024.
For investors, this "steady approach" policy tone means that trend opportunities coexist with volatility risks, requiring a good balance in position management and asset allocation.
