Tariffs Unlikely to Spark Major Inflation: Insights from Mary Daly

Mary Daly, President of the Federal Reserve Bank of San Francisco, has provided new insights suggesting that tariffs may not result in a substantial or persistent inflation increase. This assessment adds weight to the possibility of a rate cut this fall, as reported by Bloomberg News.

In an interview with Bloomberg Television, Daly confirmed her consistent modal outlook. She emphasized that her stance on adjusting rates in the fall has not shifted, even amidst ongoing economic developments.

Daly's evaluation is based on emerging evidence that tariffs are unlikely to cause the anticipated inflationary pressures, reinforcing her position on rate adjustments.

(With inputs from agencies.)