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

Decision on Interest Rate Cut in October

The Federal Reserve (Fed) has cut the policy interest rate by 25 basis points, bringing it down 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 trajectory of the economy. San Francisco Fed President Mary Daly emphasized that this interest rate cut taken in October was the right move considering the current economic conditions.

Statements Regarding the Interest Rate Decision in December

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 cut in interest rates this year has positioned the Fed better. However, Daly noted that inflation is still above the target, stressing the need to continue working to reduce price pressures. At this point, factors such as fluctuating energy prices and supply chain issues have been highlighted regarding their impact on inflation.

Disagreements within the Fed

Daly also pointed out that there are no greater disagreements within the Fed compared to previous periods. This could be an important factor for a potential interest rate increase or other monetary policy measures. Overall, Daly’s assessments create content that should be closely monitored by investors and economists.