San Francisco Federal Reserve Bank President Mary Daly reiterated that it is reasonable to expect the Fed to cut interest rates twice before the end of this year, especially since the impact of tariffs seems to be smaller than originally expected.

Daly said that inflation is still above the Fed’s 2% target and there is still work to be done to reduce inflation, but emphasized that she does not want to limit interest rates for too long because it will cause unnecessary harm to the labor market.

Asked whether she supports the Fed’s interest rate cut in July. She said that whether it is a rate cut in July, September or other months is not the most important thing, and what is more important is that interest rates will be lowered. She believes that as inflation falls, the policy rate will resume its downward adjustment and eventually be at 3% or above that level.

Daly declined to comment on President Trump’s remarks to Fed Chairman Powell, but pointed out that all Fed policymakers are involved in interest rate decisions.