Fed's Daly: We would be able to adjust rates in the fall

FXStreetJun 26, 2025 2:57 PM

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Mary Daly, President of the Federal Reserve Bank of San Francisco, indicated that she is observing growing signs that tariffs might not result in a significant or prolonged inflation increase, which could support the argument for a rate cut in the fall.

Key Quotes

Muted tariff impact may open the door to a cut in the fall.
Evidence is increasing that tariffs may not lead to a large or sustained inflation surge.
Although the labour market is slowing, there are no warning signs that it is weakening.
Monetary policy is in a good place currently.
The modal outlook has been for some time that rates would begin to be adjusted in the fall.

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