San Francisco Fed President Mary Daly Explains the 'Hawkish Cut'

Bullish:

• $HOUSING - Lower interest rates are spurring housing construction activity, with projects being taken off the sidelines in response to rate reductions.

  • “We saw immediately when we took the first 50 basis point reduction in the interest rate is our contacts. I was out in in those areas. Our contacts said, we're gonna take some projects off the sidelines.”

    Mary·7:19
• $PRODUCTIVITY - Companies are investing in productivity-enhancing technologies to manage potential workforce shortages and improve efficiency.

  • “Companies wanna manage their potential workforce shortages going forward. They wanna get better at doing their jobs faster, better, cheaper, and they're investing in these things.”

    Mary·17:34
• $AI - AI adoption is widespread across industries, with transformative potential despite caution about immediate measurable impacts.

  • “We're seeing it everywhere. I don't think we'll see it in measured productivity right away and you shouldn't expect to, but it's the impetus of change is there.”

    Mary·39:38