Federal Reserve Daley: Labor market slowdown may lead to interest rate cuts

San Francisco Fed President Daley said that the weak labor market and the short-term impact of tariffs on inflation may prompt the Fed to cut interest rates soon. She believes that the economic slowdown and the suppressive nature of monetary policy will lead to a continued decline in inflation, and the long-term impact of tariffs on inflation is limited. Daley emphasized that further weakness in the labor market could have serious consequences, and the Federal Reserve may need to adjust its policies in the coming months.