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.
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