Fed's Daly: Considering Interest Rate Cut in the Fall, Expects Two Rate Cuts by 2025

On July 11th, San Francisco Fed President Daly expressed that she still thinks there could be two interest rate cuts this year. She also pointed out that the impact of tariffs on prices might be milder than anticipated. Daly disclosed that some businesses are in the process of negotiating to share the cost of tariffs, thus reducing the proportion passed on to end consumers. She stated that the U.S. economy is in a good state, with economic growth and consumer spending slowing down but not weakening. Inflation is moving closer to the Fed's 2% target. Daly said, "I believe there may be two interest rate cuts, but everyone's expectations have uncertainties, and we are considering implementing the cuts in the fall." (FXStreet)