Mary Daly: The interest rate cut in October was a strategic move.

Interest Rate Cut Decision in October

The Federal Reserve (Fed) has lowered the policy interest rate by 25 basis points, bringing it to a range of 3.75-4%, in line with market expectations. This decision is being interpreted as one of the critical steps that will determine the course of the economy. San Francisco Fed President Mary Daly emphasized that this interest rate cut taken in October was the right move given the current economic conditions.

Statements Regarding the December Interest Rate Decision

Daly stated that monetary policy should still remain moderately tight. However, she expressed an open mind regarding the interest rate decision in December. This situation serves as an important indicator for investors and market analysts. Daly's statements provide clues about the Fed's future direction.

Inflation and Market Dynamics

The total 50 basis points interest rate cut made this year has positioned the Fed better. However, Daly pointed out that inflation is still above target, indicating the need to continue working to reduce price pressures. At this point, she highlighted the impact of fluctuating energy prices and supply chain issues on inflation.

Divergence Within the Fed

Daly also noted that there has not been more divergence within the Fed compared to previous periods. This could be an important factor for a possible interest rate hike or another monetary policy application. Overall, Daly's assessments create content that needs to be closely monitored by investors and economists.