Fed's Daly Cautions Against Premature Expectations of Interest Rate Cuts

Despite Market Expectations, Evidence of Inflation Returning to 2% Target Rate Needed Before Adjusting Policy

San Francisco Federal Reserve President Mary Daly warns it's 'premature' to expect interest rate cuts.
Daly states she needs to see more evidence of inflation returning to the central bank's 2% target rate before adjusting policy.
Despite market expectations, the Federal Open Market Committee is expected to leave its benchmark interest rate unchanged for a fourth straight meeting in January.
Inflation has fallen sharply over the past year without sparking a surge in unemployment.
Despite inflation cooling, consumers continue to spend and businesses continue to hire, with the labor market maintaining a healthy pace.