Federal Reserve (Fed) Bank of San Francisco Mary Daly hit newswires on Monday, cautioning that despite the clear signs of the need for rate adjustments, markets shouldn't run too far, too fast with expectations about the size and frequency.

Key highlights

The time to adjust policy is upon us. It's hard to imagine anything could derail sept rate cut.

I don't want to keep making policy tighter, as inflation comes down.

The labor market is completely in balance.

I am not hearing signs that firms are poised for layoffs.

I don't see signs of abrupt weakening in the labor market.

I don't see warning signs of weakness, but I want to be sure to adjust policy as we go.

It is too early to know how big rate cuts will be.

The most likely outcome is that we continue to get gradual inflation slowing, and a sustainable pace of labor market growth.

It is reasonable to adjust policy at normal cadence if the economy develops as expected.