San Francisco Fed president urges more rate cuts
Mary Daly, president of the Federal Reserve Bank of San Francisco, told Axios on Oct. 7, 2025 that the Fed should consider additional interest-rate cuts in the months ahead to avoid inflicting "unnecessary hardship" on workers. Daly — a labor economist — argued policymakers have room to lower the policy rate to a level that remains modestly restrictive while reducing downside risk to employment, citing the Beveridge Curve and recent GDP, jobs and inflation dynamics.
Economy
Finance
📌 Key Facts
- Mary Daly (San Francisco Fed president) publicly advocated cutting the policy rate to stay 'modestly restrictive' but avoid disrupting the labor market.
- She cited the Beveridge Curve as indicating a potential tipping point for rising unemployment if policy remains too tight.
- Daly said tariff-related price effects appear likely to be a one-off, supporting the case for cuts while still targeting 2% inflation over time; she referenced BEA data in the piece.