San Francisco Fed President "Too early to judge December rate decision…still a way to go to 2% inflation"

Mary Daly (Mary Daly), president of the Federal Reserve Bank of San Francisco, reaffirmed a cautious stance regarding the possibility of a rate cut in December.

On the 13th (local time), according to overseas economic outlets such as Walter Bloomberg, President Daly said, "I have not yet made a final judgment on the December rate decision." She added, "There is still work to be done to return inflation to 2%," and said, "We must be more cautious now, as decisions should be made after obtaining as much information as possible."

She evaluated that recent uncertainty has eased somewhat, but emphasized, "There is no need to rush to decide on either cutting or holding interest rates."

She also commented on the labor market and artificial intelligence (AI) investment. President Daly assessed, "The U.S. labor market has slowed considerably." However, she dismissed concerns about employment shocks, saying, "There is currently no clear evidence that AI investment has caused a net decrease in employment."

She also said, "I do not agree with the claim that AI is a temporary overheating like the tulip bubble," and added, "However, it can take more than 10 years for the industry to mature, and we must watch how patient investors will be during that period."