San Franciso Federal Reserve (Fed) President Mary C. Daly hit newswires on Friday, speaking at the Annual National Association for Business Economics Economic Policy Conference in Washington, DC.

Key highlights

• Three rate cuts is a reasonable baseline for 2024.
• It's premature to think about just letting the economy run.
• The challenge in front of the Fed right now is that the labor market tends to be good until it suddenly isn't, Fed needs to look at other data.
• US labor market is cooling, but Fed's Daly doesn't see an imminent weakening in the job market.
• Fed policy is working, just need to see how much longer to get the job done.
• Doesn't see disruptions from quantitative tightening, appropriate to plan.
• Fed's Daly doesn't agree with the idea that the last leg of inflation will be the hardest.