Fed’s Daly: Two rate cuts this year seems “reasonable”

San Francisco Fed President Mary Daly maintains that two rate cuts this year remain a reasonable projection, but with robust economic indicators, policymakers can hold off on reducing rates until they evaluate how businesses adapt to tariff costs.

Key Quotes

Two rate cuts still a reasonable projection for 2025.

Need wait-and-see posture on monetary policy, give industries time to adjust to tariffs.

Growth and labor market remain solid.

Making sure we are on sustainable path to 2% inflation is top of mind.

Policy is in a good place, have to be patient to ensure inflation comes down.

She has not changed her rate-path projection since last year, doesn't have enough info to make a change.

Hearing 'cautious optimism' from businesses.