Headline: Fed's Daly: No Indication Yet to Halt Interest Rate Cuts

San Francisco Fed President Mary Daly mentioned that she sees no indication that the U.S. central bank will halt the reduction of interest rates, which remain "definitely" high enough to constrain the economy. Despite recent robust economic data, Daly indicated that continued rate reductions seem to be the appropriate course for the Fed. Speaking to the Wall Street Journal, Daly emphasized the aim of achieving a "soft landing," where inflation falls to 2%, the labor market remains healthy, and wages keep pace with higher prices. She argued that the Fed should persist in reducing its policy interest rate as inflation decreases; otherwise, there is a risk that the policy could become excessively tight and harm the labor market. In her statement, Daly also predicted that a policy rate around 3% would be considered "neutral" by economists, being neither restrictive nor accommodative.