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

Interest Rate Cut Decision in October

The Federal Reserve (Fed) has reduced the policy interest rate by 25 basis points, bringing it down to the 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 interest rate cut taken in October is a correct step given the current economic conditions.

Statements Regarding the December Interest Rate Decision

Daly stated that monetary policy still needs to remain moderately restrictive. 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 hints 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 highlighted 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 emphasized regarding their impact on inflation.

Disagreements Within the Fed

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