San Francisco Federal Reserve (Fed) President Mary C. Daly said late Friday that the central bank’s recent rate cut was intended to bolster a weakening labor market, highlighting signs of a notable slowdown in the US economy over the past year.
Her remarks came as the Fed continues to face pressure from both political and market circles. The Trump administration has pushed for deeper rate reductions, while investors are watching closely for signals on the Fed’s independence following this week’s confirmation of Stephen Miran as a new voting member of the Federal Open Market Committee (FOMC).
Key takeaways from Daly’s comments
- The US labor market has softened considerably over the past year.
- Slowing job growth reflects both cyclical weakness and uncertainties in the economic outlook.
- Daly noted that it is difficult to determine how much of the slowdown is linked to technological shifts such as artificial intelligence.
- The Fed’s rate cut was framed as a move to support employment and cushion downside risks.
