The fundamentals of the U.S. economy are moving to where an interest rate cut may be necessary, San Francisco Federal Reserve Bank President Mary Daly said Friday, though she signaled a July rate cut would probably be too early.
"Unless we saw a faltering in the labor market that was meaningful and we thought it would be persistent then I would say the fall looks more appropriate to me," Daly said in an interview on CNBC.
At the same time, she said, what is a current softening of the labor market could easily turn into a weakening, "and we can't allow for that to happen because we're waiting for inflation to pop up just around the corner."