MNI BRIEF: Fed's Daly Says Soon Time To Recalibrate Policy

San Francisco Fed President Mary Daly said Friday the time is coming for the Federal Reserve to reduce interest rates in order to prevent further damage to a weakening job market.

"It will soon be time to recalibrate policy to better match our economy," she wrote in a LinkedIn post. 

"Congress has given the Fed two goals: full employment and price stability. Both are in tension at the moment, with tariffs pushing inflation higher and the labor market showing signs of slowing." 

Daly thinks tariff-related price increases will be a one-off. "It will take time before we know that for certain. But we can't wait for perfect certainty without risking harm to the labor market," she said. (See MNI POLICY: Job Revisions Pressure Fed To Cut In September)