(Reuters) – San Francisco Federal Reserve President Mary Daly said on Monday she supported the U.S. central bank’s two interest rate reductions this year to counter headwinds to the U.S. economy, including weaker global growth, trade tensions and geopolitical uncertainty.
The U.S. economy is in a “good place,” Daly said in Salem, Oregon, using the same phrase as Fed Chair Jerome Powell and Fed Vice Chair Richard Clarida. But trade and other uncertainties are percolating through to businesses, slowing their spending; and easing monetary policy “partially offsets” that decline and keeps the U.S. economy from slowing overall, Daly said.
The Fed last week cut its overnight policy rate by a quarter of a percentage point for the second time this year, and now targets a range between 1.75% and 2.0%. The decision drew three dissents out of 10 total votes. Daly is not a voter on policy this year.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.