Fed’s Daly: Will Consider Rate Normalization if Tariff Measures Are Absent

Federal Reserve’s Daly stated that concerns about the impact of tariffs on inflation are not as severe as initially announced; if there were no tariff measures, rate normalization would be considered; the continued decline in inflation is good news. She also noted that the economic fundamentals are moving in a direction that may require a rate cut, and unless signs of weakness appear in the labor market, a rate cut in the fall seems more appropriate.