San Francisco Fed President: "Labor market and tariff impacts are limited... Fed should cut rates"
Suehyeon Lee
Summary
- Mary Daly, President of the Federal Reserve Bank of San Francisco, emphasized the need for an interest rate cut.
- President Daly stated that the effects of a slowing labor market and tariffs on inflation are short-term.
- She analyzed that if slowing economic growth and restrictive monetary policy persist, prices will continue to drop.
Mary Daly, President of the Federal Reserve Bank of San Francisco, argued that the Fed should soon move to lower interest rates.
According to O'Daily on the 7th (local time), President Daly said, "The impacts of a weakening labor market and tariffs are only a short-term threat to inflation. The Fed will soon need to cut rates."
President Daly analyzed, "Even when there were no tariffs, inflation had been gradually declining. If slowing economic growth and restrictive monetary policy persist as they do now, prices will continue to fall." She added, "Tariffs may create short-term inflationary pressure, but the likelihood of those effects continuing in the long term is low."
Suehyeon Lee
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