Mary C. Daly, the president of the Federal Reserve Bank of San Francisco, said that the central bank shouldn’t act “out of fear.”According to Mary C. Daly, the president of the Federal Reserve Bank of San Francisco, the central bank should not make decisions based on fear. At their last meeting, Federal Reserve officials predicted that they would make two more quarter-point rate cuts by the end of 2024 due to slowing inflation and a cooling job market. However, recent labor data has been stronger, raising the question of what this means for the interest rate outlook if the job market does not slow down. Daly suggested that even if the economy continues to perform well, the central bank should still lower interest rates as long as inflation remains under control. She emphasized that policymakers should not try to slow down the economy if there is evidence that inflation is not a concern. Daly cited the strong job market in 2019, which did not lead to rapid inflation, as an example of how low unemployment can lead to wage gains and bring more people into the labor market. She stated that if the economy could replicate the conditions of 2019, she would support it. This statement was made during an interview on Tuesday morning before Daly delivered a speech at New York University. She also mentioned that the article content is currently unavailable and asked readers to enable JavaScript in their browser settings. If the reader is in “Reader mode,” they should exit and log into their Times account or subscribe to access the content. Daly concluded by encouraging readers to subscribe to The New York Times for all of their news. 

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