Fed’s Daly: Fed needs to cut policy rate because inflation is falling, economy is slowing

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Fed’s Daly: Fed needs to cut policy rate because inflation is falling, economy is slowing
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On Thursday, San Francisco Federal Reserve President Mary Daly said that the “Fed needs to cut policy rate because inflation is falling and the economy is slowing.” Additional comments On size of Sept Fed rate cut, 'we don't know yet'.

On Thursday, San Francisco Fed eral Reserve President Mary Daly said that the “ Fed needs to cut policy rate because inflation is falling and the economy is slowing.” Additional comments On size of Sept Fed rate cut, 'we don't know yet'. Need more data, including friday's job market report and CPI Fed must calibrate policy to the evolving economy. Labor market has softened but still healthy, and that 'has to be sustained and protected'.

This results in a stronger US Dollar as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. How often does the Fed hold monetary policy meetings? The Federal Reserve holds eight policy meetings a year, where the Federal Open Market Committee assesses economic conditions and makes monetary policy decisions.

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