Headline: Fed’s Daly: December Rate Move Still Uncertain as Inflation Eases, Jobs Cool
The Federal Reserve’s December policy decision remains open, according to San Francisco Fed President Mary Daly, who urged patience as officials weigh mixed economic signals. Daly said it is premature to declare whether the central bank will cut or hold rates next month, highlighting a data-dependent approach.
Daly described the outlook with “cautious optimism,” noting that inflation continues to trend lower but remains stubborn in parts of the economy. She added that the US labor market has slowed “quite a bit,” a sign that tighter financial conditions are working, but not yet a reason to pre-commit to easing policy.
With markets pricing roughly mid-50% odds of a December rate cut, investors face a finely balanced setup. Daly emphasized the premium on waiting for as much information as possible before deciding, setting the stage for a closely watched meeting that could shape borrowing costs, credit conditions, and financial markets into year-end.
Key Points – San Francisco Fed President Mary Daly says it’s too soon to call a December rate cut or hold – Inflation is easing but still sticky in places, warranting caution – The labor market has slowed significantly, reflecting tighter policy – The Fed is prioritizing incoming data before making a December decision – Market pricing implies roughly mid-50% odds of a December cut – December’s meeting is likely to be pivotal for rate expectations and financial conditions
