Fed's Daly pointed out that the current labor market has achieved full balance, which means that the relationship between employment and unemployment rates has reached a stable state. Under this background, she believes that the timing to adjust policies has come. Daly stated that although inflation levels have decreased, she does not want to continue implementing tightening policies. She further explained that while there has been no significant weakness observed in the labor market recently, nor any notifications of companies planning layoffs, future economic dynamics still need to be closely monitored. Daly also pointed out that it is too early to determine the extent of rate cuts at present, but the trend of interest rates overall shows a downward trajectory. It is worth noting that Daly emphasized the importance of bringing inflation down to 2%, and mentioned that the real neutral interest rate after adjusting for inflation is as high as 1%, providing a reference for the Fed when formulating monetary policy.