Small font size A Larger text size A Largest text size A

Fed's Daly: 'A little bit more' rate cutting likely needed 'over time'

BY Reuters | ECONOMIC | 09/25/25 03:54 PM EDT

Sept 25 (Reuters) - San Francisco Federal Reserve Bank President Mary Daly repeated on Thursday that the U.S. central bank likely needs to cut interest rates further, but it needs to move slowly as it balances risks to its twin goals of full employment and price stability. "I think a little bit more will be needed over time to get that interest rate where it's balancing out those two risks," Daly said at the San Francisco Fed's 2025 Western Bankers Forum. "If you adjust the path all at once, you risk one of the goals. ... If you adjust the path gradually, assess the information before deciding, then you can actually get to a good achievement." (Reporting by Ann Saphir; Editing by Leslie Adler)

More Fixed Income News

EMERGING MARKETS-Indonesian rupiah slips; Asian assets mark time ahead of Fed BY Reuters |ECONOMIC 03:04 AM EST
PRECIOUS-Gold subdued ahead of Fed verdict, silver powers to record high BY Reuters |ECONOMIC 02:42 AM EST
IMF urges China to speed up structural reform, raises growth forecasts BY Reuters |ECONOMIC 02:32 AM EST
IMF urges China to speed up structural reform, raises growth forecasts BY Reuters |ECONOMIC 02:30 AM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article