Fed's Daly: If Inflation is More Persistent, Rate Cuts May be Fewer than Twice this Year
According to Jinshi, Fed's Daly stated that she is satisfied with the expectation of two rate cuts this year. However, if inflation proves more persistent, the number of rate cuts this year may be fewer than twice.
If economic growth slows down, further rate cuts will be implemented. Gradually reducing policy rates with no sense of urgency is the correct approach. The Fed's only commitment is to restore price stability. Currently, the U.S. has a stable labor market, but still needs to achieve price stability.
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