San Francisco Federal Reserve President: Support this week's decision to cut interest rates, too tight monetary policy may be bad for households

Mary Daly, president of the San Francisco Fed, said the Fed's decision to cut interest rates this week was not an easy one, but she ultimately backed the move. "Real wage growth comes from a long and steady economic expansion, which is at a relatively early stage," she wrote in a LinkedIn post. Daly said the Fed must continue to reduce inflation to its 2 per cent target, but at the same time must be careful to protect the labour market. "Tightening policy too much could hurt households unnecessarily and expose them to two problems: above-target inflation and a weak labour market."