Fed's Daly: 'Open mind' about December, but direction of interest rates is down

The Federal Reserve’s benchmark rate is going to continue to move lower over time, regardless of what the central bank decides to do at its December meeting, San Francisco Fed President Mary Daly said, on Tuesday.

“I don’t see a reason for a rate hike right now. I see the directory of change is down,” Daly said, in an interview on the Fox Business Network.

Daly, who is a voting member of the FOMC this year, said she still had an “open mind” about whether to cut or skip at the meeting in two weeks. The Fed can take its time in lowering rates, she added.

Daly said she didn’t think the Fed should react to expectations of massive new tariffs expected from the incoming Trump administration.