Fed's Daly: It’s time to consider adjusting borrowing costs

Federal Reserve Bank of San Francisco President Mary Daly said that the US central bank needs to take a gradual approach to lowering borrowing costs, per Financial Times.  

Key quotes

Daly calls for a "prudent" approach to lowering rates

Pushes back on economists’ concerns that the US economy is heading for a sharp slowdown that warrants rapid cuts in interest rates.

Gradualism is not weak, it’s not slow, it’s not behind, it’s just prudent. 

After the first quarter of this year, inflation has just been making gradual progress toward 2 percent. 

The Fed did not want to overtighten into a slowing economy.

No need for a dramatic response to the weakening labor market.

Market reaction 

The US Dollar Index (DXY) is trading 0.03% higher on the day at 102.45, as of writing.