Fed’s Daly: Expects Two Rate Cuts in 2025, Tariff Impact May Be Weaker Than Expected

According to a report by Jinse Finance, San Francisco Federal Reserve President Mary Daly stated that she still believes there could be two interest rate cuts this year, and noted that the impact of tariffs on prices is increasingly likely to be milder than previously expected. Daly revealed that some companies are negotiating to share the costs of tariffs, thereby reducing the proportion passed on to end consumers. She said that the U.S. economy is in good condition, with economic growth and consumer spending slowing down, but not weakening. Inflation is moving toward the Federal Reserve’s 2% target. “I think there may be two rate cuts, but everyone’s expectations are uncertain, and we are considering implementing rate cuts in the fall,” Daly said.