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Fed's Daly says this week's rate cut was right move for Fed

BY Reuters | ECONOMIC | 04:07 PM EST

Dec 12 (Reuters) - Federal Reserve Bank of San Francisco President Mary Daly said on Friday in a LinkedIn posting that she favored cutting interest rates at this week's monetary policy meeting.

"This week's (Federal Open Market Committee) decision was not an easy choice," Daly wrote, with the Fed facing conflicts between its job and inflation goals. Inflation is too high and the job market is getting softer, she said, adding "we cannot let the labor market falter."

Daly wrote the Fed's quarter-percentage-point rate cut on Wednesday "puts us in a good place" to both lower inflation and to support the job market.

(Reporting by Michael S. Derby; Editing by Chris Reese)

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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.

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