Federal Reserve (Fed) Bank of San Francisco President Mary Daly noted late Monday that while she expects the Fed to continue slowly easing interest rates lower in the coming quarters, the Fed is still maintaining a data-dependent approach.

Key highlights

Daly sees ongoing rate cuts in the near future.

Labor market slowdown is unwanted.

No reason to halt rate cuts, monetary policy remains tight.

Businesses are reporting headcount management through attrition, not layoffs.

Soft landing best achieved by adjusting policy rates as inflation declines.

Consumers’ shift to lower-priced items demonstrates restricted pricing influence.

Neutral rate estimate at 2.5% to 3%.

Fed will learn through experience where neutral rate is.