Fed's Daly hints at a rate cut in September, stating there is a tension between dual objectives.

[Fed's Daly hints at a rate cut in September, stating there is tension between dual objectives] San Francisco Fed President Daly indicated that policymakers will soon be ready to cut rates and mentioned that inflation caused by tariffs may only be temporary. "It’s time to recalibrate policy to better align with the economy," she wrote in a social media post shared by the San Francisco Fed on Friday. Daly stated that the price increases related to tariffs "will be one-time events." "It will take time to determine this," she wrote, "but we cannot take the risk of harming the labor market while waiting for complete certainty." Daly said, "Currently, there is tension between the Fed's dual objectives: tariffs are pushing up inflation, while the labor market shows signs of slowing down."