(Reuters) - San Francisco Federal Reserve President Mary Daly said Monday that the central bank’s three rate cuts leave the U.S. economy better positioned to withstand the risks of global slowdown, joining the chorus of policymakers saying it is time to let the Fed’s insurance cuts take effect.
“The last three interest rate cuts that we made are to be supportive so we don’t find ourselves in a slowdown that translates into something else,” Daly said Monday at an event at New York University. “It’s about getting the economy in a good place... so that we can continue to push against the considerable headwinds against the U.S. economy.”
Daly also said the U.S. economy was strong and that officials would adjust monetary policy if economic data pointed to a more pessimistic outlook.
Fed officials lowered interest rates last week for the third time this year, bringing the target level to a range of 1.50% to 1.75%. The rate cut was accompanied with new language suggesting that officials were done with the current ‘mid-cycle’ round of rate reductions.
Daly does not vote on the Fed’s monetary policy decisions this year but she does participate in deliberations.
Reporting by Jonnelle Marte, Editing by Rosalba O'Brien