Key Facts
• Mary Daly, San Francisco Fed President, spoke in a FOX Business interview.
• She stated two rate cuts in 2025 are a “good projection.”
• Inflation progress has slowed since late 2022, stalling near 2%.
• Daly ruled out a significant rate cut at the September FOMC meeting.
• She emphasized gradual adjustments based on economic data.
• Daly reiterated this view in a Wall Street Journal interview on August 14.
• A 0.5-point rate cut in September is deemed unnecessary by Daly.
Summary
Mary Daly, President of the Federal Reserve Bank of San Francisco, stated that two rate cuts in 2025 remain a reasonable expectation. Speaking to FOX Business, she emphasized the importance of gradual adjustments based on economic conditions and data. Daly also ruled out the need for a significant rate cut during the September Federal Open Market Committee (FOMC) meeting. Inflation, which had slowed significantly since mid-2022, has recently stalled near the 2% target. In a separate interview with the Wall Street Journal on August 14, Daly reiterated her stance, highlighting that while the number of rate cuts could vary, two reductions remain a likely scenario. She dismissed the necessity of a 0.5-point rate cut in September.
