We would be able to adjust rates in the fall

Mary Daly, President of the Federal Reserve Bank of San Francisco, indicated that she is observing growing signs that tariffs might not result in a significant or prolonged inflation increase, which could support the argument for a rate cut in the fall.

Key Quotes

• Muted tariff impact may open the door to a cut in the fall.
• Evidence is increasing that tariffs may not lead to a large or sustained inflation surge.
• Although the labour market is slowing, there are no warning signs that it is weakening.
• Monetary policy is in a good place currently.
• The modal outlook has been for some time that rates would begin to be adjusted in the fall.