Fed's Daly: Further rate cuts may be needed

On September 25, San Francisco Fed President Daly stated on Wednesday that she "fully supports" the Fed's decision to cut interest rates last week and mentioned that further rate cuts may be needed in the future. When discussing the Fed's rate cut last week, Daly said, "Economic growth, consumer spending, and the labor market have all slowed, while inflation has risen less than expected, primarily concentrated in industries directly impacted by tariffs. Economic risks have shifted, and it is time to take action. Looking ahead, further adjustments to policy may be necessary to restore price stability while providing necessary support to the labor market." However, she added that the Fed's forecasts are not commitments, and its goal remains to maintain maximum employment and price stability. Daly had previously stated that two 25 basis point rate cuts this year were a reasonable forecast, and she did not update that view on Wednesday. ( Jin10 ).