San Francisco Fed President: Supports this week's rate cut decision; excessively tight monetary policy may be detrimental to households

Golden Finance reports that Mary Daly, President of the San Francisco Federal Reserve Bank, stated that the decision for the Federal Reserve to cut interest rates this week was not easy, but she ultimately supported the move. She wrote on LinkedIn, “Real wage growth comes from long-term stable economic expansion. The current economic expansion is still in its relatively early stages.” Daly said that the Federal Reserve must continue to bring inflation down to the 2% target level, but at the same time, it must also cautiously protect the labor market. “Overly tight policies could cause unnecessary harm to American families and face them with two issues: inflation above the target level and a weak labor market.”