San Francisco Fed President Daly Says Slower US Job Growth Reflects Weaker Demand, Not Labor Supply — Implications for December Fed Rate-Cut Debate

San Francisco Fed President Daly argued that the slowdown in US job growth reflects softer labor demand, not a reduced labor supply from immigration policy. This distinction matters for the Fed rate cuts debate, as policymakers weigh the monetary policy trajectory against payroll and wage data. For crypto markets, policy clarity can alter risk sentiment and price dynamics.

Daly’s remarks signal that slower wage growth and cooled hiring reflect demand dynamics rather than supply constraints. For traders, this keeps policy expectations in flux, amplifying volatility in Bitcoin and other tokens as markets reprice risk. Crypto assets often move with risk assets when the Fed signals clarity.

She did not explicitly back another rate cut at the December meeting, noting that policy requires an open mind and rigorous evidence. As the Fed weighs incoming data, crypto markets should stay disciplined, focusing on fundamentals and avoiding overreliance on near-term rhetoric.