Fed's Daly: Job Market Could Suddenly Weaken, Supports Rate Cut in December

November 25th. As reported by The Wall Street Journal, Mary Daly, President of the Federal Reserve Bank of San Francisco and a 2027 FOMC voter, expressed her support for a rate cut next month. She considers that the probability of a sudden deterioration in the labor market is higher than that of a sharp increase in inflation and is also more difficult to control. In an interview on Monday, she stated, "I'm not certain that we are in the lead in the labor market. The labor market is currently fragile enough, and the risk lies in a nonlinear change." She mentioned that, in contrast, the risk of an inflation spike is lower because the cost increase driven by tariffs is much more moderate than was expected earlier this year. Daly's viewpoint is significant. Although she does not have a vote on monetary policy this year, she rarely publicly disagrees with Federal Reserve Chairman Powell. At the meeting from December 9th to 10th, Daly may play a crucial role in resolving the internal FOMC debate on whether to cut rates or pause the rate hike. (Forex Factory)