- Fed Reserve Bank of SF President Mary Daly indicated further rate cuts are likely needed, but the US central bank should approach those cuts with caution. She told reporters that she thought “likely policy adjustments will be added, as the FED works to restore price stability while providing needed support to the labor market.” As we have reported, the labor market is taking center stage and has outshone the tariffs currently in effect. We can expect to see a lot of news surrounding this leading up to the October 29th Fed meeting.
- As we know, the Federal Reserve has a new policymaker appointed by President Trump. He laid out his argument yesterday for lowering rates aggressively over the subsequent several meetings, and this makes him an “outsider” in the FED. In his first policy speech, Miran argued that the neutral rate of interest has been pushed lower by tariffs, immigration restrictions, and tax policy.
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