Fed's Daly says she keeps a 'very open mind' on interest rates and she leans toward more rate cuts in 2026, hard to note if that's one cut or two, according to reports
Importance
Level 1
- Supported Fed's decision last week to hold rates steady, but thought case could have been made for a cut.
- To cut, you'd need to be more confident on inflation, or see labour market as more challenged than data currently shows.
- Workers feel they are walking on a 'knife's edge'.
- If job market goes from 'no firing' to "some firing,' Fed may need to cut rates.
- Sees more vulnerability in labour market than on inflation.
- would be comfortable holding rates steady for longer if inflation kicks back up.
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