Fed pro Daly slams the table: Cut rates by 50 points? Do you think this is ICU rescue?!

The Fed's meeting in September hasn't even started, and the powder keg was almost ignited! Daly from the San Francisco Fed slammed her teacup on the table—cutting 50 basis points? Which idiot came up with that terrible idea? Is this meant to revive the economy or are we just trying to make it die faster?! Those red-eyed gamblers on Wall Street are eagerly waiting for the Fed to act like a generous benefactor, dropping interest rates like candy, but in Daly's eyes, it's just pure madness!

"50 basis points?" Daly's tone during the interview was like that of a grandparent reprimanding a grandchild, "When this news breaks, the global markets will be scared to death! They’ll think the employment market in the United States is heading for the crematorium tomorrow!" She was almost rolling her eyes to the back of her head, "Weak? About to collapse? What nonsense! The pile of data reports in front of me doesn't say 'help' anywhere!" In Daly's view, playing with interest rate cuts like this isn't about saving the market; it's about TM creating panic and throwing everything into chaos!

Don’t think that Daly is an unyielding iron lump. Last month, she remained silent, but she nodded. Now she has also hinted that a slight drop in September is not impossible. Why? The inflation seems to have calmed down a bit, but the job market is indeed getting chilly—so chilly that she feels embarrassed to say the word "steady"! The employment growth data from a few months ago? Officially revised down significantly, hitting them hard in the face! Older brothers who are unemployed trying to get back to work? The waiting time is long enough to binge-watch a series! The cold wind is howling, really penetrating to the bones. Daly’s expression darkened, and she stated firmly: "A crash? Not really. But this trend is concerning! The wind is blowing in the wrong direction! Anyone who dares to be blind to this chill should get out while they can!"

So what does she actually want to do? The cards are already on the table: with the current policy, the noose might be tied too tightly, nearly choking the economy to death. "We need to loosen the ties," Daly advocates for a "slow and steady approach," rather than a vigorous stir-fry—over the next year or so, taking small steps to gradually adjust the policy back to a state of "not too loose, not too tight." This is completely different from the market's eager crowd that is clamoring to "get rich quick!"

The most critical thing is that Daly's mouth says "not too loose, not too tight" (neutral interest rate), like a flickering ghostly shadow! Back in June, she even said there would be two rate cuts this year, "more or less." As soon as she finished speaking, she left herself a loophole: "If the job market bleeds out dramatically, more than expected, hey, if there are three meetings left this year, I'll accept a cut at each one! Conversely, if that old monster of inflation suddenly comes back with a vengeance, baring its teeth at us? Then sorry, how many rate cuts? Let’s start by halving it!" This policy expectation is like walking a tightrope with your eyes covered, making people's hearts race!

Daly's contemplation of inflation carries a hint of the "while everyone is intoxicated, I alone am sober" arrogance. Tariffs have been increased, yet commodity inflation surprisingly hasn't exploded? She seems to have caught on to something—this kind of death spiral where "a price hike triggers a mad scramble, and once everything is sold out, it forces another price hike"; we may have already stepped one foot past that threshold! Big companies are now like Teenage Mutant Ninja Turtles, quietly absorbing most of the cost from the increased tariffs without passing it all onto the public as scapegoats. Daly made a very down-to-earth analogy: it's like discovering a pinhole leak in the water pipes at home; the cost pressure seeps through the long supply chain, thread by thread, rather than "boom"—a direct explosion that floods the entire house with rising prices, drowning you and leaving you bankrupt!

Daly's core message is as sharp as a knife tempered by fire: the current situation is far from a moment where the Fed needs to carry an "emergency kit" and rush in recklessly! What she is truly wary of is the market's crowd that enjoys the spectacle and stirs up panic on their own! The job market has softened, but it hasn't collapsed; inflation has receded, but that ghost is still lurking behind the rocks, watching ominously! Faced with this tangled mess of fog, she insists on "feeling the stones to cross the river," carefully "loosening restrictions," rather than wildly chopping with a "three-axe" approach!

Daly's remarks, which are a mix of cuts and blows, are like a bucket of ice water thrown over those speculators eagerly waiting for the Fed to immediately open the floodgates and let the capital run wild! What she is shouting is: adjusting this precise economic instrument requires a needle, don't just swing a club around aimlessly! Rushing to implement a major policy shift? You might just be the spark for the next crisis!

When the market's reckless bets collide with the cold prudence of decision-makers; when the earnest advice of "take it slow" meets the desperate cries of "hurry up," a huge question mark hangs over the entire Wall Street like the sword of Damocles: Sister Daly firmly presses down on the interest rate cut lever, refusing to budge. What is she really afraid of? Is it the seemingly dormant beast of inflation, which is actually sharpening its fangs in the dark, ready to strike back at any moment? Or is it the insatiable behemoths on Wall Street, with their gaping maws, ready to drag the Fed into the bottomless abyss of capital desire, skin and bones included? How will this silent struggle ultimately tear apart everyone's expectations in a bloody manner? More ruthlessly, when she shouts out, is she reminding the market to stay calm, or is she… ringing the alarm bell for a certain chair in the temple?