Federal Reserve's Daly: Policymakers Need to Stay Open to Further Rate Cuts

BlockBeats News, November 10th - San Francisco Fed President Daly said on Monday that the reason for the slowdown in US job growth is more likely to be a weakening demand for workers rather than a decrease in labor supply due to tightened immigration policies. This is an important distinction for the Fed's debate on whether to further cut interest rates. Daly mentioned in a newly published article that the slowdown in wage growth suggests that the decrease in monthly job additions indicates that businesses need fewer workers, not just because it has been difficult for companies to find new employees after the Trump administration tightened immigration policies.

In the article, Daly did not explicitly state whether she supports another rate cut at the Fed's December meeting, only stating that "developing the right policy requires an open mind and a thorough exploration of the evidence on both sides of the debate." (Jinshi)