Bloomberg Talks San Francisco Fed President Mary Daly Talks Interest Rates, Inflation, Tariff Impact
Jun 26, 2025
Mary Daly, President and CEO of the Federal Reserve Bank of San Francisco, shares her insights on the current economic landscape. She argues that tariffs may not significantly raise inflation. Daly believes an interest rate cut is possible this fall, indicating that monetary policy is in a stable position. The conversation also touches on the labor market's resilience and the Federal Reserve's dual focus on employment and price stability, highlighting the challenges they face amidst shifting economic conditions.
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Labor Market Solid, Slowing
- The labor market remains solid but is slowing down to a more sustainable pace.
- There are no warning signs of weakening despite the rise in continuing claims.
Tariffs' Inflation Impact Uncertain
- Tariffs may cause delayed inflation impact, which might be one-off or less than expected.
- Businesses could absorb costs, reducing the inflation effect on consumers.
Expect Rate Cut in Fall
- The Federal Reserve’s policy is data dependent and forward-looking, not backward-looking.
- There is a promising possibility of an interest rate cut in the fall, but uncertainty remains.