San Francisco Federal Reserve Bank President Mary Daly said on Friday that the U.S. labor market is in a precarious position.
Daly said economic conditions could have justified an interest rate cut by the Federal Reserve at its meeting last week.
She noted that signs of labor market softening are becoming more visible across several sectors.
Daly said policymakers must balance inflation risks against potential damage to employment growth.
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She added that additional interest rate cuts may be necessary if labor market conditions weaken further.
The Federal Reserve held rates steady at its most recent policy meeting amid mixed economic signals.
Officials have said future decisions will depend on incoming data on inflation and employment.
Daly’s comments highlight growing concern within the Fed about sustaining job market stability.
