Federal Reserve's Daly says further rate cuts may be needed, but the timeline is still unclear

Mary Daly, President of the Federal Reserve Bank of San Francisco (2027 FOMC voting member), believes that after a 25 basis point rate cut, interest rates remain moderately restrictive, and policymakers will closely monitor the increasingly weak labor market. "I think, over time, we need to raise rates a bit more to balance these two risks," she referred to the threats posed to employment and inflation. "When that will happen is actually a reflection of the latest information on inflation and the labor market."