Fed Rate Cut Decision Was a ‘Close Call,' Says Mary Daly

Federal Reserve Bank of San Francisco President Mary Daly said she is “very comfortable” with policymakers’ median projection of two interest-rate cuts next year, emphasizing the central bank can turn to a slower approach.

“My projection is that it will take many fewer rate cuts next year than we thought but I’ll watch the economy and see if that works out,” Daly said Friday in an interview on Bloomberg Television.

Earlier this week Fed officials signaled they’d likely significantly slow the pace of interest-rate cuts next year after lowering borrowing costs three consecutive times. The latest move, which Daly called a close call, brought the federal funds rate to a range of 4.25% to 4.5%.

“Now I feel we’ve got that recalibration phase behind us, and we’re in the next phase,” she said. “The next phase is really looking at the incoming information. We can return to a more typical pattern of gradualism for the Fed.”

Daly spoke with Bloomberg's Jonathan Ferro, Lisa Abramowicz and Michael McKee.

--------

Watch Bloomberg Radio LIVE on YouTube

Weekdays 7am-6pm ET

Follow us on X

Subscribe to our Podcasts:

Bloomberg Daybreak

Bloomberg Surveillance

Bloomberg Intelligence

Balance of Power

Bloomberg Businessweek

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:

Apple CarPlay

Android Auto

Visit our YouTube channels:

Bloomberg Podcasts

Bloomberg Television

Bloomberg Originals