Fed’s Daly Advocates for Adjusting Borrowing Costs, According to FT Report by Reuters

San Francisco Federal Reserve Bank President Mary Daly has expressed that it’s time to consider adjusting borrowing costs from their current range of 5.25% to 5.5%, according to an interview with a financial publication released on Sunday.

Daly emphasized that a gradual approach to adjusting rates is not indicative of weakness or slowness but rather a prudent strategy. She noted that while the labor market is experiencing some slowdown, it is not in a state of weakness.

Earlier this month, she mentioned that it’s premature to conclude whether the July jobs report reflects a slowdown or significant decline. She underscored the importance of preventing the labor market from entering a downturn and expressed confidence that inflation is moving toward the 2% target.

Federal Reserve Chair Jerome Powell is set to address the economic outlook on Friday, coinciding with the annual economic symposium hosted by the Kansas City Fed in Jackson Hole, Wyoming.