Fed's Daly: sees three rate cuts in 2024

San Franciso Federal Reserve (Fed) President Mary C. Daly hit newswires on Friday, speaking at the Annual National Association for Business Economics Economic Policy Conference in Washington, DC.

Key highlights

• Three rate cuts is a reasonable baseline for 2024.
• It's premature to think about just letting the economy run.
• The challenge in front of the Fed right now is that the labor market tends to be good until it suddenly isn't, Fed needs to look at other data.
• US labor market is cooling, but Fed's Daly doesn't see an imminent weakening in the job market.
• Fed policy is working, just need to see how much longer to get the job done.
• Doesn't see disruptions from quantitative tightening, appropriate to plan.
• Fed's Daly doesn't agree with the idea that the last leg of inflation will be the hardest.