According to data from Jinshi, San Francisco Federal Reserve President Daly stated that policymakers will soon be ready to cut interest rates, and that inflation caused by tariffs may only be temporary. She wrote in a social media post from the San Francisco Fed that policy needs to be recalibrated to better match the economy.
Daly noted that the price increases related to tariffs will be one-time events, but it will take time to confirm this. She emphasized that one cannot risk damaging the labor market while waiting for complete certainty. Currently, there is tension between the Federal Reserve's dual objectives: tariffs have pushed up inflation, while the labor market shows signs of slowing.