Rate Cuts Are Approaching, More Than Two Cuts Possible This Year

On August 5, San Francisco Fed President Mary Daly noted that mounting evidence of a weakening job market and the absence of persistent tariff-driven inflation mean the time for rate cuts is drawing near. Speaking on last week's FOMC decision, Daly said, “I’m willing to wait another cycle, but I can’t wait forever.” While a September cut isn’t a given, she emphasized, “Every meeting going forward should be considered a live one for policy adjustment.” Daly said two 25bps cuts this year look appropriate, stressing that it’s more about whether cuts come in September and December, not if cuts will happen at all.