Fed's Daly (2027 voter) says policy is in a good place and labour market is in a better position after 75bps of cuts, adds inflation continues to decline outside goods sector

• We have more work to do to get inflation down, but don't want to get behind, or over our skis.

Fed's Daly's comments indicate a cautious but balanced outlook on policy after recent rate cuts, reflecting confidence in the labor market's stability. Her emphasis on the need to further address inflation, particularly beyond the goods sector, suggests that while the Fed feels no immediate pressure to act aggressively, they remain vigilant. This nuanced stance may reinforce expectations for a measured approach to future rate decisions, impacting market sentiment across various asset classes.