Fed's Daly: If Inflation is More Persistent, There May Be Fewer Than Two Rate Cuts This Year

Fed's Daly stated that she is satisfied with the expectation of two rate cuts this year, but if inflation is more persistent, there may be fewer than two rate cuts this year. If economic growth slows, further rate cuts will be necessary, and gradually reducing policy rates without urgency is the correct approach. The Fed's only commitment is to restore price stability. Currently, the U.S. has a stable job market, but price stability still needs to be achieved.