Fed's Daly: If inflation falls rapidly or the job market weakens beyond expectations, it will be necessary to cut interest rates
Fed's Daly stated that if inflation falls slower than expected, policy rates must be maintained at a high level for a longer time; if inflation gradually falls and labor market rebalances slowly, then the Fed can gradually adjust its policy; if inflation falls rapidly or the labor market is weaker than expected, lowering policy rates will be necessary.
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