San Francisco Fed President Highlights Labor Demand as Key Factor in Job Growth Slowdown

According to BlockBeats, San Francisco Federal Reserve President Mary Daly has indicated that the slowdown in U.S. job growth is more likely due to a decrease in demand for workers rather than a reduction in labor supply caused by stricter immigration policies. This distinction is significant in the ongoing debate within the Federal Reserve regarding potential further interest rate cuts. In a recently published article, Daly noted that the deceleration in wage growth and the reduction in monthly job additions suggest that businesses require fewer workers. This is not solely attributed to challenges in finding new employees following the immigration policy tightening under U.S. President Donald Trump's administration. Daly did not explicitly state her position on whether she supports another rate cut at the Federal Reserve's December meeting. She emphasized the importance of maintaining an open mind and thoroughly examining evidence from both sides of the debate to formulate appropriate policies.