The Federal Reserve should take its time before cutting interest rates, given the risks that some of the factors that have been pushing down inflation might peter out or even reverse, San Francisco Fed President Mary Daly said on Friday.
“We will need to resist the temptation to act quickly when patience is needed, and be prepared to respond agilely as the economy evolves,” Daly said in a speech at the National Association for Business Economics conference in Washington, D.C.
She said an expectation of three rate cuts was a “reasonable baseline” for the outlook for monetary policy this year.
Stocks
DJIA
SPX
were lower on Friday and the yield on the 10-year Treasury note
BX:TMUBMUSD10Y
rose to 4.29% following a stronger-than-expected producer-price index report.
Daly said the bumpy economic data this week was normal for turning points in the economy.
