Overview

• Mary Daly said mounting evidence of a softening job market and absence of persistent tariff-driven inflation bring rate cuts closer at the September FOMC meeting.
• Daly emphasized that every future FOMC meeting will be “live” for potential policy adjustments, underscoring flexibility in the timing of cuts.
• She maintained that the two quarter-point cuts penciled in for 2025 remain appropriate while cautioning that more or fewer reductions might be needed based on forthcoming economic readings.
• John Williams said he approaches the September meeting with an open mind on easing and will base any decision strictly on labor and inflation data.
• Both officials reaffirmed that policy moves depend on fresh economic readings rather than preset timelines as the Fed weighs its dual mandate.