The president of the Federal Reserve (Fed) of San Francisco, Mary Daly, indicated on Friday, that she sees “plus the fall of the northern hemisphere, not the July meeting, as a possible time for a cut” of interest, as stated during an interview with CNBC.
According to Daly, the decision will depend on the evolution of the economy, especially the labor market. “Unless I saw a weakening of the labor market, the fall seems more appropriate for an interest cut,” he added. The fall in the US begins in September.
Without voting rights at this year’s meetings of the Fed, the president of the district of São Francisco still minimized the immediate impact of US tariffs on inflation. “Concerns about the impact of inflation rates are not as large as when they were first announced,” he said.
Still, he pondered that “with tariffs, we can have a significant impact on inflation,” although it has recognized that it is also possible that they “are not so inflationary.” For her, “we have several possibilities about how much of these rates will be passed on to consumers.”
Despite the uncertainties, the leader stressed that “inflation is falling and this is great news,” and stressed that, without the imposition of new tariffs, “I would be considering the normalization of the interest rate.” She also stated that the American economy “follows in a good position,” but warned that “additional weakening in the job market can easily become deterioration.”
