Her call for more economic data comes after the FOMC kept rates unchanged at its July meeting, with market pricing putting the chance of a September hike at 46.5%.
Federal Reserve official Mary Daly said she fully supports keeping interest rates at current levels and wants additional economic data before any policy shift is considered. Her view matches the Federal Open Market Committee, or FOMC (Federal Reserve policy-setting body), which recently left the federal funds target range unchanged at 3.50% to 3.75%. The July meeting produced a split vote, with most members backing a hold while some favored a rate increase. The stance reinforced a cautious policy approach as officials weigh mixed signals in the economy. The report said Daly’s comments appear to lower the likelihood of a September rate hike, while market pricing showed a slight decline in that probability to 46.5%. Investors are now watching inflation and employment data for clues on the Fed’s next move. Comments from Fed Chair Jerome Powell and other voting members may also shape expectations, while stable or easing inflation could strengthen the case for rates to remain unchanged.