FOMC member: Rate cuts to accompany falling US inflation

In a 22 October interview, San Francisco Federal Reserve Bank President Mary Daly said there is room to cut US interest rates further after a big-time 50 basis point reduction last September. 

 

US Treasury yields have fallen recently as market players think stronger economic data could delay the pace of rate cuts. However, we think such a comment from a voting member confirms that the Fed will most likely cut rates anew during its November 6-7 meeting.