Federal Reserve's Daly: Tariffs have not yet affected the U.S. economy, rate cuts are not urgent, and there is still room for balance sheet reduction

San Francisco Federal Reserve President Mary Daly stated that she feels reassured by the market's expectation of two rate cuts in 2025, but inflation risks remain, and there is no urgent need for the Federal Reserve to cut rates. Although Trump's tariff policy has increased uncertainty, it has not yet impacted the U.S. economy. She mentioned that there is still room for the Federal Reserve to reduce its balance sheet and that a tighter policy needs to be maintained over a longer period in the future