San Francisco Fed President Mary Daly said she fully supported last week’s quarter-point rate cut, the Fed’s first this year, and signaled more reductions are likely.
Daly noted that growth, consumer spending, and the labour market had slowed while inflation remained contained, mostly in tariff-affected sectors. She said the balance of risks had shifted, making it “time to act.”
She added that policy projections are not promises but scenarios subject to trade-offs at each decision point. While she previously said two cuts this year seemed reasonable, Daly gave no update to that view.
Fed projections show most policymakers expect at least one more cut this year, with many seeing two.
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