Fed’s Daly says next rate cut more likely in the fall

Federal Reserve Bank of San Francisco President Mary Daly said an interest-rate cut this fall looks more appropriate than moving when policymakers gather in July.

“For me, I look more to the fall,” Daly said Friday in an interview on CNBC. “By then, we’ll have quite a bit more information, and businesses are telling me that’s what they’re going to look to for some resolution.”

Daly called recent inflation data — which has come in unexpectedly tame for three straight months — “really good news,” but cautioned against moving too quickly.

“I wouldn’t be preemptive. I really look to balance the two goals we have,” she said, referring to the Fed’s employment and inflation mandates.

Earlier on Friday, Fed Governor Christopher Waller said he thinks the central bank can lower rates as early as July. The Fed’s next meeting is scheduled for July 29-30.

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