Last week, Fed member Mary Daly suggested policymakers will be ready to lower interest rates soon, adding that inflation stemming from tariffs will likely prove temporary: “It will soon be time to recalibrate policy to better match our economy,” she wrote Friday in a brief social media post. She also said tariff-related price increases “will be a one-off.” Fed officials have held interest rates steady this year at a 4.25%-4.5% range. Daly’s comments echoed remarks from Chair Jerome Powell, who last week opened the door to an interest-rate cut as soon as the Fed’s next policy meeting in September, pointing to recent economic data showing a sharp slowdown in hiring.
- The futures market is currently pricing in an 88% chance of a Fed 0.25% cut this month.
