Fed Daly: Further interest rate cuts may be necessary

San Francisco Fed President Daly said on Wednesday that she "fully supports" the Fed's decision to cut interest rates last week and said further cuts may be needed in the future. "Economic growth, consumer spending and the labour market have all slowed, while inflation has risen less than expected and remains concentrated in sectors directly affected by tariffs," Daly said of the Fed's rate cut last week. "Economic risks have shifted and it is time to act. Looking ahead, further policy adjustments may be needed to provide the necessary support to the labour market while restoring price stability." However, she added that the Fed's forecast was not a promise and that its goal remained maximum employment and price stability. Daly has previously said two 25 basis point rate cuts this year are reasonable projections, and she did not update that view on Wednesday.