Federal Reserve's Daly: Further rate cuts may be necessary

Jinse Finance reported that San Francisco Federal Reserve President Mary Daly stated on Wednesday that she "fully supports" the Fed's decision to cut interest rates last week and indicated that further rate cuts may be needed in the future. Speaking about last week's rate cut, Daly said: "Economic growth, consumer spending, and the labor market have all slowed, while inflation has risen less than expected, mainly still concentrated in industries directly affected by tariffs. Economic risks have shifted, and it is time to take action. Looking ahead, further policy adjustments may be necessary to restore price stability while providing the necessary support for the labor market." However, she added that the Fed's forecasts are not commitments, and its goal remains to maintain maximum employment and price stability. Daly previously stated that two 25-basis-point rate cuts this year are a reasonable forecast, and on Wednesday she did not update this view.