San Francisco Fed President Supports Recent Rate Cut, Signals Possible Future Adjustments

According to BlockBeats, San Francisco Federal Reserve President Mary Daly expressed her full support for the Federal Reserve's recent decision to cut interest rates. She indicated that further rate reductions might be necessary in the future. Daly highlighted that economic growth, consumer spending, and the labor market have all slowed, while inflation has risen less than expected, primarily affecting industries directly impacted by tariffs. Daly noted that economic risks have shifted, necessitating action. Looking ahead, she suggested that policy adjustments might be required to stabilize prices while providing essential support to the labor market. However, she emphasized that the Federal Reserve's forecasts are not commitments, with the primary goal remaining maximum employment and price stability. Previously, Daly had stated that two 25 basis point rate cuts this year were a reasonable prediction, but she did not update this view on Wednesday.