Fed's Daly leans closer toward rate cuts, but still remains cautious

Federal Reserve (Fed) Bank of San Francisco President Mary C. Daly hit newswires late Monday, noting that although there's plenty of reasons to start looking at interest rate cuts, there remains plenty of uncertainty making it difficult for Fed officials to step into rate trimming too quickly.

Key highlights

We may do fewer than two cuts. The more likely thing is we need to do more.
On the July Fed decision, I was willing to wait another cycle, but we can't wait forever.
Still a lot of uncertainty over whether a September rate cut would be appropriate.
The job market is not precariously weak, but it is softening, and further softening would be unwelcome.
We can't wait to be certain there is no inflation persistence, need to make a call based on what's most likely.
I'm seeing no indication of persistent tariff effect on inflation.