San Francisco Fed Pushes Against Interest Rate Cut

San Francisco Federal Reserve President Mary Daly has publicly opposed a suggested 50 basis point interest rate cut during the Federal Reserve's upcoming September meeting. The Wall Street Journal reported her remarks on Thursday, citing her concerns about sending an unwarranted sense of urgency to observers.

In an interview with the Journal on Wednesday, Daly clarified her stance, expressing skepticism about the necessity of an aggressive rate cut given the current labor market conditions. 'Fifty sounds, to me, like we see an urgent — I'm worried it would send off an urgency signal that I don't feel about the strength of the labor market,' Daly said.

Her comments come amid ongoing debates within the Federal Reserve about aligning monetary policy with economic indicators. Daly emphasized her perspective, stating, 'I just don't see that. I don't see the need to catch up.'

(With inputs from agencies.)