San Francisco Federal Reserve Bank President Mary Daly said that it was not easy for the Federal Reserve to make a decision to cut interest rates this week, but in the end, she supported the move. In a LinkedIn post, she said, “Real wage growth comes from long-term stable economic expansion. And the current economic expansion is still at a relatively early stage.” Daly said that the Federal Reserve must continue to reduce the inflation rate to the target level of 2%, but it must also carefully protect the labor market. “Too tight policies could unnecessarily hurt American households and expose them to two problems: higher than target inflation and a weak labor market.”

San Francisco Federal Reserve Bank President Mary Daly said that it was not easy for the Federal Reserve to make a decision to cut interest rates this week, but in the end, she supported the move. In a LinkedIn post, she said, “Real wage growth comes from long-term stable economic expansion. And the current economic expansion is still at a relatively early stage.” Daly said that the Federal Reserve must continue to reduce the inflation rate to the target level of 2%, but it must also carefully protect the labor market. “Too tight policies could unnecessarily hurt American households and expose them to two problems: higher than target inflation and a weak labor market.”