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

Interest Rate Cut Decision in October

The U.S. Federal Reserve (Fed) has reduced the policy interest rate by 25 basis points, bringing it to a range of 3.75-4%. This decision is considered one of the critical steps that will determine the course of the economy. San Francisco Fed President Mary Daly emphasized that this rate cut in October was the right step given the current economic conditions.

Statements Regarding the Interest Rate Decision in December

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

Inflation and Market Dynamics

The total 50 basis points cut in interest rates made this year has positioned the Fed better. However, Daly pointed out that inflation is still above the target, stressing the need to continue working to reduce price pressures. In this context, factors such as fluctuating energy prices and supply chain issues were highlighted for their impact on inflation.

Disagreements Within the Fed

Daly also noted that there have not been more disagreements within the Fed compared to previous periods. This could be an important factor for a potential interest rate hike or other monetary policy actions. Overall, Daly's assessments create content that investors and economists should closely monitor.