Fed Daly: The time to cut interest rates is approaching, and the number of rate cuts during the year is more likely to be greater than two

With evidence mounting that the jobs market is softening and no sign of persistent tariff inflation, the time for a rate cut is near, said Ms Daly, president of the San Francisco Fed. "I'm willing to wait one more cycle, but I can't wait forever," she said of the Fed's decision last week. While that did not mean a September cut was a foregone conclusion, she said: "I would be inclined to think that every meeting going forward is an instant meeting to think about policy adjustments." Ms Daly said two 25 basis point rate cuts this year still looked like an appropriate readjustment and that what mattered was whether to cut rates in both September and December, not whether they would happen. "If inflation picks up and spreads, or if the labor market picks up, of course there can be fewer than two rate cuts, but it's more likely that more than two rate cuts will have to be made," Mr. Daly said. "If the labor market looks to be entering a period of weakness and we don't see inflation spillovers, be prepared for more rate cuts."