ICYMI – Mester and Daly both say 3 Fed rate cuts this year, but its not a promise

Loretta Mester, president and CEO of Federal Reserve Bank Cleveland branch and her FOMC colleague Mary Daly, President of the San Francisco Federal branch both spoke on Tuesday.

Mester said:

• Three cuts this year is reasonable but is a ‘close call’

Daly was on a similar track:

• Three cuts is a reasonable baseline this year, not a promise

They both had plenty more to say.

M:

• Fed’s Mester: Still expects the Fed can cut rates later this year but not at next meeting
• More Mester: Seeing some slowing in the economy, but it is rebalancing
• Mester: Three rate cuts for 2024 is still a reasonable forecast

D:

• Fed’s Daly: Standing pat is the right policy for the moment
• More from SF Fed Pres.Mary Daly: When we say 2% is inflation goal, we mean it

These two are in contrast to what we heard last week:

• Fed’s Waller says may need to hold current rate for longer than expected, no rush to cut
• Waller’s remarks have pumped up the US dollar
  • (ps still is too)
• More Fed’s Waller: The economy has supported the cautious approach by the Federal Reserve

• Still more from Fed’s Waller: If unemployment goes up no reason to panic
• Fed’s Bostic say he now anticipates only one rate cut this year
• If economy continues to be healthy, why would we cut rates

Is June on for a cut? Here’s the latest from Fed Watch:

This article was written by Eamonn Sheridan at www.forexlive.com.