$CFX Chances of Fed Rate Cut in September Jump to 94.4%

San Francisco Fed President Mary Daly says the timing of a rate cut is getting closer, as signs of a weakening labor market and less persistent tariff-driven inflation persist.

She said two 25 basis point rate cuts this year still seem like a reasonable adjustment. But if the labor market weakens without widespread inflation, the Fed could have to cut rates more than twice.

The odds of a September rate cut have jumped to 94.4% from 80.3% following the July nonfarm payrolls report.