San Francisco Federal Reserve President Daly stated that she still believes there may be two rate cuts this year and pointed out that the likelihood of tariffs having a milder impact on prices than expected is increasing. Daly revealed that some businesses are negotiating to share the cost of tariffs, thereby reducing the proportion passed on to end consumers. She stated that the U.S. economy is in good shape, with economic growth and consumer spending slowing down, but not weakening yet. Inflation is moving towards the Federal Reserve's 2% target. "I think there may be two rate cuts, but there is uncertainty in everyone's expectations, and we are considering implementing rate cuts in the fall," Daly said.