San Francisco Fed: Concerned about labor market outlook, may need to cut interest rates one to two more times

According to foreign media reports, San Francisco Federal Reserve President Mary Daly stated that she believes it may be necessary to cut interest rates one to two more times to offset the weakness in the labor market, as rising prices are eroding workers' wages and new job opportunities are scarce, leading to a precarious labor market.

She mentioned that there must be a very open attitude towards adjusting interest rates to support further cuts, believing that the impact of tariffs will gradually fade and inflation is indeed declining. Although the current risks of price stability and full employment appear relatively balanced, there is more concern about the labor market than inflation, as if businesses do not see the expected demand materializing, the labor market could quickly shift from a "small number of layoffs" to an environment of "partial layoffs."