Overview

• San Francisco Fed President Mary Daly said she fully supported the Federal Reserve’s quarter-point rate cut on September 17, the first policy reduction this year.
• She stated that further policy adjustments are likely as the Fed works to restore price stability while providing support to the labor market.
• Policymaker projections from last week’s meeting show most officials foresee at least one more quarter-point cut this year, with the largest group expecting two.
• Daly cited evidence that growth, consumer spending, and the labor market have cooled, while inflation has risen less than expected and is largely confined to tariff-affected sectors.
• She emphasized that projections guide but do not guarantee future moves, delivering her prepared remarks to students at the University of Utah’s David Eccles School of Business and offering no update to her earlier view that two cuts this year were reasonable.