Federal Reserve Bank of San Francisco President Mary Daly
- Fed needs to cut policy rate because inflation is falling and the economy is slowing
- On size of September Fed rate cut, "we don't know yet."
- Daly says she needs more data, including Friday's job market report and CPI.
- Fed must calibrate policy to the evolving economy.
- Labor market has softened but is still healthy, and that "has to be sustained and protected."
- Hard to find evidence that labor market is faltering.
- Overly tight policy could mean additional, unwelcome labor market slowing.
- We have not restored price stability; inflation is still people's number one concern.
- Businesses are being "frugal" on hiring, but not yet "dusting off their layoff manuals."
- We are at an inflection point in the economy, and data will be volatile.
- Fed can take aggressive action when the outlook is clear, but the current outlook is uncertain.
