Federal Reserve's Daly: The job market could suddenly deteriorate, supports a rate cut in December

Jinse Finance reported, citing The Wall Street Journal, that Mary Daly, President of the Federal Reserve Bank of San Francisco and a 2027 FOMC voting member, stated that she supports a rate cut next month because she believes the likelihood of a sudden deterioration in the job market is greater and harder to control than a sudden surge in inflation. In an interview on Monday, she said: "In the labor market, I am not confident that we can stay ahead. The labor market is now fragile enough that the risk lies in a nonlinear change." She noted that, by contrast, the risk of an inflation outbreak is lower, as cost increases driven by tariffs have been much milder than expected earlier 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 Chairman Powell. At the meeting on December 9-10, Daly may play a key role in resolving internal disagreements within the rate-setting committee over whether to cut rates or pause hikes. (Golden Ten Data)