MNI BRIEF: Fed's Daly - Labor Market Has Softened Quite A Bit

San Francisco Fed President Mary Daly said Friday the labor market has softened quite a bit over the last year and that is why she supported a 25 basis point cut to interest rates this week. 

"Right now you've seen over the last year the labor market slow quite substantially. It's softened quite a bit," she said in a fireside chat on AI. "Part of that is just the outlook for the economy is slower, so businesses are being more cautious. Part of it is that companies don't have to hire as quickly, because they can do things with technology." (See: MNI INTERVIEW: Fed To Cut Every Meeting To End Year - Bullard) 

"As you saw, we took a 25 basis point rate cut to try to support the labor market through the slowing that we've seen and achieve both of our goals," Daly said.