Fed’s official: Interest rate cut pace will depend on economic data

Mary Daly, President of the US Federal Reserve Bank in San Francisco, said that the latest jobs report indicates a slowdown in the US economy and not a recession, stressing that the pace of interest rate cuts will depend on economic data.

Daly stressed the importance of not allowing the labor market to slow down significantly to the point of recession.

US indices fell by about 3% yesterday, while the fear index recorded its largest increase since 2018, amid an increased possibility of recession and a decline in enthusiasm for artificial intelligence stocks, according to Al Arabiya.

Traders now expect the Federal Reserve to cut interest rates by 110 basis points this year, with an expectation of more than 70% for a 50 basis point cut in September.