Key Facts
• August 29, Mary Daly indicated readiness for a near-term rate cut.
• Tariff-driven inflation likely to be temporary, Daly stated on social media.
• Federal Open Market Committee (FOMC) maintained rates at 4.25–4.5% in 2025.
• Jerome Powell highlighted labor market risks despite inflation concerns on August 22.
• Daly emphasized balancing maximum employment and price stability amid economic tensions.
• Daly does not hold voting rights in this year’s FOMC decisions.
• Earlier this month, Daly suggested two rate cuts in 2025 may be appropriate.
Summary
Mary Daly, President of the Federal Reserve Bank of San Francisco, expressed openness to a potential rate cut in September, citing the need to align monetary policy with economic conditions. She described tariff-induced inflation as likely temporary and stressed the importance of not waiting for complete certainty to act, given potential labor market risks. The Federal Open Market Committee (FOMC) has kept interest rates steady at 4.25–4.5% this year, with Federal Reserve Chair Jerome Powell recently acknowledging rising labor market risks. Daly, who does not have voting rights in this year’s FOMC, previously suggested that two rate cuts in 2025 could be appropriate. The Federal Reserve continues to navigate the dual mandate of maximum employment and price stability amid economic uncertainties.
