TechFlow news, November 25 — According to Jinshi Data citing The Wall Street Journal, Mary Daly, President of the Federal Reserve Bank of San Francisco and a 2027 FOMC voting member, said she supports cutting interest rates next month, as she believes the risk of a sudden deterioration in the labor market is greater and harder to control than a sharp rise in inflation. In an interview on Monday, she said: "In the labor market, I don't have confidence that we can stay ahead. The labor market is now sufficiently fragile, and the risk lies in nonlinear changes occurring."
She stated that, by comparison, the risk of an inflation flare-up is lower because cost increases driven by tariffs have been far more moderate than earlier expected this year. Daly's views are noteworthy; although she does not have a vote on monetary policy this year, she rarely publicly disagrees with Federal Reserve Chair Powell. At the meeting on December 9–10, Daly could play a key role in resolving internal committee disagreements over whether to cut rates or pause rate hikes.
