Fed's Daly: It's time to consider rate cuts

Daly, a member of the Federal Reserve FOMC this year, said that recent economic data makes me "more confident" that inflation is under control. It is time to consider adjusting the current interest rate range of 5.25%-5.50%. Although the labor market is slowing, it is "not weak." She also said that the Fed does not want to "tighten monetary policy too much when the economy is slowing." She added that failure to adapt policy to the progress of inflation and slowing economic growth "will lead to the result we don't want, that is, stable prices, but the labor market becomes unstable and shaky." Her remarks are consistent with the views of Atlanta Fed President Bostic. Bostic recently said that waiting too long to cut interest rates "does bring risks." The weak employment report in July raised concerns about the health of the US economy and to some extent triggered a global stock market sell-off. Daly said that companies generally do not resort to layoffs. Instead, they are now cutting discretionary spending to adapt to a "bubble world" that is no longer "unrestrained growth." (Jinshi)