financetom
Economy
financetom
/
Economy
/
Fed's Daly says she backed latest rate cut, open to another one in December
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Fed's Daly says she backed latest rate cut, open to another one in December
Nov 3, 2025 10:29 AM

(Reuters) -San Francisco Federal Reserve President Mary Daly on Monday said she supported the U.S. central bank's interest rate cut last week, and will want to sift through incoming data to assess if another reduction in borrowing costs is warranted at the December 9-10 meeting.

"I thought it was appropriate to take another bit off the policy rate," she said at the Forum Club of the Palm Beaches in Florida, noting that the U.S. economy has been resilient, and that while inflation is running above the Fed's 2% target, the labor market has also softened. As for next month's policy decision, Daly said she will "keep an open mind."

The Fed's quarter-percentage-point rate reduction at its October 28-29 meeting was the second such cut of the year, and brought its benchmark policy rate to the 3.75%-4.00% range. Several policymakers since the meeting have said they thought the rate cut was not needed; a couple of officials, however, have said they already feel that another rate cut will be needed at the Federal Open Market Committee meeting in December. 

Daly said by the time of that meeting she will want to assess if the 50 basis points of rate cuts so far this year have delivered enough insurance against further softening in the labor market, or if more support might still be needed.

Data including state-based unemployment insurance claims suggests the labor market is not on a "precipice," she said, adding that inflation is running at around 3%. Despite the absence of official economic statistics during the ongoing federal government shutdown, she said, the central bank has access to a lot of data, including from surveys and conversations with businesses and communities that will help inform views about appropriate policy.

"Oftentimes, before a meeting of the FOMC, the views are widely different," she said. "But then, by the time you get to the meeting, so much more information has been given that it's easier to see a convergence around at least a couple of ways to go."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US manufacturing contracts further in October; supplier delivery times lengthen
US manufacturing contracts further in October; supplier delivery times lengthen
Nov 3, 2025
WASHINGTON (Reuters) -U.S. manufacturing contracted for an eighth straight month in October as new orders remained subdued, and suppliers were taking longer to deliver materials to factories against the backdrop of tariffs on imported goods. The Institute for Supply Management (ISM) said on Monday its manufacturing PMI fell to 48.7 last month from 49.1 in September. A reading below 50...
Fed's Daly says she backed latest rate cut, open to another one in December
Fed's Daly says she backed latest rate cut, open to another one in December
Nov 3, 2025
(Reuters) -San Francisco Federal Reserve President Mary Daly on Monday said she supported the U.S. central bank's interest rate cut last week, and will want to sift through incoming data to assess if another reduction in borrowing costs is warranted at the December 9-10 meeting. I thought it was appropriate to take another bit off the policy rate, she said...
No surprises seen in US debt issuance: T-Bills up, bonds steady
No surprises seen in US debt issuance: T-Bills up, bonds steady
Nov 3, 2025
NEW YORK (Reuters) -The U.S. Treasury is widely expected this week to announce its intention to keep note and bond auction sizes unchanged over the next 12 months, at least, as it likely continues to issue more bills and shorter-term debt to manage a sizable fiscal deficit. The Treasury will release its quarterly borrowing estimates on Monday at 3:00 p.m....
Fed's Goolsbee is on fence about need to cut rates in December
Fed's Goolsbee is on fence about need to cut rates in December
Nov 3, 2025
(Reuters) -Federal Reserve Bank of Chicago President Austan Goolsbee said on Monday he's in no hurry to cut interest rates again with inflation still too far above the central bank's 2% target.  I'm not decided going into the December meeting and my threshold for cutting is a little bit higher than it was at the last two meetings, Goolsbee said...
Copyright 2023-2026 - www.financetom.com All Rights Reserved