Fed’s Daly Says Jumbo September Rate Cut Unlikely

San Francisco Federal Reserve President Mary Daly said a “large” interest-rate cut at the Federal Open Market Committee’s September meeting “doesn’t seem warranted,” according to an interview published by the Wall Street Journal. Daly argued that while inflation continues to move toward the Fed’s 2% goal, economic data do not yet justify an outsized move. She added that policymakers will monitor incoming figures on prices, employment and consumer spending before deciding the size of any adjustment. Her comments temper market speculation that the Fed might accelerate easing after its quarter-percentage-point reduction in July. Futures traders are currently pricing in a standard 25-basis-point cut for September.