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

Decision on Interest Rate Cut in October

The Federal Reserve (Fed) has lowered the policy rate by 25 basis points, bringing it to a range of 3.75-4%. This decision is seen 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 in October was the right move considering the current economic conditions.

Statements Regarding the December Interest Rate Decision

Daly stated that monetary policy should still remain moderately tight. Additionally, she expressed her open-mindedness 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 in a better place. However, Daly pointed out that inflation is still above the target, and emphasized the need to continue efforts to reduce price pressures. At this point, factors such as fluctuating energy prices and supply chain issues were highlighted for their impact on inflation.

Divisions Within the Fed

Daly also noted that there are not more divisions within the Fed compared to previous periods. This could be an important factor for a potential interest rate hike or other monetary policy implementations. Overall, Daly's assessments create content that should be seriously monitored by investors and economists.