Exclusive: Fed's Daly says two rate cuts this year 'reasonable' as firms adjust to tariffs

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Exclusive: Fed's Daly says two rate cuts this year 'reasonable' as firms adjust to tariffs

^{Published on 2025-03-28 11:20:58 - Reuters}

San Francisco Federal Reserve Bank President Mary Daly still sees two interest-rate cuts this year as a "reasonable" projection, but with the labor market solid, the economy still growing and inflation edging down,

In an exclusive interview with Reuters, San Francisco Federal Reserve Bank President Mary Daly indicated that two interest rate cuts in 2023 could be reasonable as businesses adjust to the economic impacts of tariffs. Daly highlighted that while the U.S. economy is robust, the ongoing trade tensions, particularly with China, have introduced uncertainties that businesses are navigating through adjustments in pricing, supply chains, and investment decisions. She emphasized the importance of the Fed's role in supporting economic stability by potentially lowering rates to counteract any adverse effects from these tariffs. However, she also noted that the decision would be data-dependent, focusing on inflation trends, employment levels, and global economic conditions.

Read the Full Reuters Article at:
[ https://www.msn.com/en-us/money/markets/exclusive-feds-daly-says-two-rate-cuts-this-year-reasonable-as-firms-adjust-to-tariffs/ar-AA1BQHbT ]

N@N

Exclusive: Fed's Daly says two rate cuts this year 'reasonable' as firms adjust to tariffs