Mary Daly Advocates for Lower Interest Rates Amid Labor Market Concerns

Mary Daly, President of the San Francisco Federal Reserve Bank, suggests lowering interest rates in light of a deteriorating job market. She expresses less concern about inflation, noting that tariff-driven cost increases have been less impactful than expected, according to her interview with the Wall Street Journal.

Mary Daly, President of the San Francisco Federal Reserve Bank, has expressed strong support for reducing interest rates at the Federal Reserve's upcoming meeting. Her recommendation comes amid concerns about a weakening labor market, according to her recent interview with the Wall Street Journal.

Daly indicated that she does not feel confident in tackling the challenges presented by the labor market, signaling a potential pivot in economic policy focus. Despite apprehensions surrounding employment, she assures that the risk of inflation overtaking the economy remains minimal.

Highlighting a lesser threat from inflation, Daly pointed out that the anticipated rise in prices driven by tariffs has been more subdued than many had feared earlier in the year. This shift in economic dynamics influences her stance on monetary policy adjustments.

(With inputs from agencies.)