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According to ChainCatcher, San Francisco Federal Reserve President Mary Daly stated that with mounting evidence of a weakening job market and no signs of persistent tariff-driven inflation, the timing for a rate cut is approaching. Commenting on the Fed’s decision last week, Daly said, “I’m willing to wait another cycle, but I can’t wait forever.” While this does not mean a rate cut in September is a foregone conclusion, she said, “I tend to think that every meeting going forward is a live meeting for considering policy adjustments.” Daly noted that two 25-basis-point rate cuts this year still appear to be an appropriate recalibration, emphasizing that the key issue is whether cuts occur in both September and December, rather than if they will happen at all. Daly said, “If inflation rebounds and spreads, or if the labor market heats up, of course there could be fewer than two rate cuts, but it’s more likely that more than two cuts will be necessary. If the labor market appears to be entering a period of weakness and we do not see inflation spillovers, we should be prepared for additional rate cuts.”

According to ChainCatcher, Federal Reserve's Daly stated that two rate cuts this year remain an appropriate adjustment. She is satisfied with the Fed's July decision, but would be less comfortable making the same decision again. There is still considerable uncertainty regarding a possible rate cut in September. "Regarding the July decision, I am willing to wait another cycle, but we cannot wait forever. The job market has not shown significant weakness, but it is softening, and further weakening would be unwelcome." No signs have been observed that tariffs are having a sustained impact on inflation.