San Francisco Federal Reserve President Mary Daly expressed concerns about the potential softening of the US economy during an event hosted by the Hawaii Executive Collaborative. Daly noted that while there are worries about a possible deterioration and the softening of the economy turning into weakness, she emphasized that the current data does not indicate such a scenario.
Addressing the unexpectedly weak jobs report from last month, Daly stated that it has not convinced her of the immediate need for significant action by the central bank. She described the current situation as a slowdown rather than a drastic decline, highlighting that businesses are not laying off workers but are instead reducing the pace of hiring.
Daly mentioned that she will closely monitor the upcoming labor market reports to assess any potential shifts in the economic landscape. She pointed out that recent conversations with business owners have indicated a cautious approach to hiring rather than mass layoffs, which suggests a more moderate adjustment in the economy.
While Daly hinted at the possibility of a rate cut at the Federal Reserve's next meeting, she refrained from specifying the magnitude of the potential cut. She acknowledged that a rate reduction could be warranted but did not disclose the exact size of the adjustment she deems appropriate.
