NextFin news, Federal Reserve Bank of San Francisco President Mary Daly said on Wednesday, September 24, 2025, in prepared remarks at the University of Utah that further interest rate cuts will likely be needed as the Federal Reserve continues its efforts to restore price stability and support the labor market.
Daly expressed full support for the Federal Open Market Committee's recent decision to cut policy rates, emphasizing that additional monetary policy easing is probably required going forward. She highlighted the dual mandate of the Fed to balance inflation control with labor market health.
"It is likely that further policy adjustments will be needed as we work to restore price stability while providing needed support to the labor market," Daly said, underscoring the complexity of the current economic environment.
However, Daly cautioned that the Federal Reserve should proceed carefully with future rate cuts to avoid undermining economic progress or causing unintended consequences. She stressed the importance of a measured approach to monetary policy adjustments.
Daly's comments come amid ongoing concerns about inflation levels and economic growth prospects in the United States. The Fed has recently begun easing its policy stance after a series of rate hikes aimed at curbing inflation.
Her remarks reflect a consensus among some Fed officials that while inflation pressures have moderated, the central bank must remain vigilant and flexible in its policy decisions to sustain economic stability.
The Federal Reserve's next policy meetings will be closely watched by markets for signals on the timing and scale of any further rate cuts.
Sources: Reuters, Bloomberg, Seeking Alpha (September 24, 2025)
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