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Feds Daly: Two rate cuts expected in 2025, tariff impact may be weaker than expected
Odaily News San Francisco Fed President Mary Daly said she still believes there could be two rate cuts this year, noting the likelihood that tariffs will have a milder-than-expected impact on prices is rising. Daly revealed that some companies are negotiating to share tariff costs, thereby reducing the proportion passed on to end consumers. She said the U.S. economy is in good shape, and economic growth and consumer spending are slowing, but not yet weakening. Inflation is moving toward the Feds 2% target. I think there may be two rate cuts, but there is uncertainty in everyones expectations, and consider implementing a rate cut in the fall, Daly said.
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