Daly, SF Fed President, says that three rate cuts are a reasonable basis for 2024

I think it’s a very reasonable basis,” Daly said on Tuesday, who votes on monetary policy decisions this year, during an event in Nevada.

The president of the Federal Reserve Bank of San Francisco, Mary Daly, said that three interest rate cuts remain a reasonable expectation for 2024, although there is no urgency to make adjustments at this time.

“I think it’s a very reasonable basis,” Daly said on Tuesday, who votes on monetary policy decisions this year, during an event in Nevada. For now, “growth is strong, so there really is no urgency to adjust the rate,” she said.

Fed officials largely agreed at their March 19-20 monetary policy meeting that it would be appropriate to begin cutting their benchmark rate at some point in 2024, with the median participant estimating three reductions this year, according to projections released after the meeting.

The target range for the rate is currently 5.25% to 5.5%, and investors are betting on an initial cut in June, according to futures.

Federal Reserve Bank of Cleveland President Loretta Mester, speaking at a separate event on Tuesday, said she wants to see more evidence that inflation will come down before starting to cut rates.