S&P 500 slumps as jobs data stoke economic concerns offsetting Fed rate cut bets
Investing.com -- Federal Reserve Bank of San Francisco President Mary Daly said Thursday that the U.S. is making progress toward price stability, while expressing confidence that inflation is on a sustainable path down to the Fed’s 2% target.
During a Q&A session, Daly noted that consumers are slowing but not stopping their spending, which suggests a gradual cooling in economic activity rather than a sharp decline.
When asked about tariffs, Daly indicated she would be concerned if tariff impacts spread beyond imports to other sectors of the economy. She observed that importers and retailers are currently absorbing some of the tariff costs rather than passing them fully to consumers.
Daly also suggested that potential tariffs might not drive significant consumer price increases, alleviating some inflation concerns.
Looking ahead to monetary policy, Daly projected that two interest rate cuts in 2025 would be the likely outcome.
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