News

Three Rate Cuts May Be Necessary, Says Fed’s Mary Daly

San Francisco Fed’s Mary Daly suggests three Fed rate cuts in 2025 due to weakening labor market and dismisses inflation concerns.
Published by
Three Rate Cuts May Be Necessary, Says Fed’s Mary Daly

Highlights

  • Daly warns delay in rate cuts risks harm to weakening labor market.
  • Fed likely to cut rates soon amid soft job data and low inflation.
  • Daly insists decisions driven by economic indicators alone.

San Francisco Fed President Mary Daly has signaled that rate cuts may begin soon, warning more than two may be needed this year.

Advertisement

Daly Signals Fed Rate Cut Likely, Warns Delay Risks Labor Harm

Daly says the possible rate cuts is due to weakening labor market trends and stable inflation. According to a Reuters report, she said the time is approaching for the U.S. Fed to initiate the reduction of interest rates.

Daly explained that continued policy inaction may become misaligned with economic conditions. The San Francisco Fed president said she supported the July decision to hold rates steady but signaled growing discomfort with delaying cuts much longer.

She warned that waiting too long risks harming the labor market and missing the optimal moment for policy adjustment. Daly further stated that there is evidence of softening in the labor market.

U.S. employers added only 73,000 jobs in July while unemployment rate rose slightly to 4.2%. However, Daly said broader labor indicators show consistent weakening.

She stressed that two Fed rate cuts this year, as planned in June, still make sense. But she indicated there could be more rate cuts to come should job weakness persist. She dismissed the concerns that new tariffs will cause inflation.

She claims that there’s no data to prove that trade related price increments are affecting the economy. Daly argued that waiting six months to confirm inflation trends would be too late to act.

Although she did not commit to a September rate cut by the Fed, Daly said every meeting from now on must discuss making such decisions. She emphasized the importance of incoming data from labor and inflation reports.

The Federal Reserve is now operating in a policy “tradeoff space,” Daly explained. The Fed must weigh the balance between restraining inflation and supporting sustainable employment. She believes policy must adjust soon to avoid missing this balance.

Advertisement

Traders React to Trump Pressure and Weak Jobs Data

Daly’s comments follow President Donald Trump’s continued push for immediate rate cuts, including plans to announce a Fed Governor who supports rate cuts. However, she clarified her decisions are based on economic data, not political pressure.

There’s now a 94.4% probability that the Federal Reserve will cut rates at its September meeting. The expected shift is from the current 4.25%–4.50% range to 4.00%–4.25%. Only 5.6% of market participants still anticipate no change in rates.

Advertisement
Share
Paul

Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via paul@coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Will Crypto Market Rebound or Crash Ahead as 10X Research Tips Shorting Ethereum?

Bitcoin, Ethereum, XRP, and other altcoins tumbled amid the latest crypto market crash. Over $1.2…

October 31, 2025
  • News

Sam Bankman-Fried Says FTX Was “Never Bankrupt,” Crypto Community Reacts

Sam Bankman-Fried (SBF) team on Friday revealed an estimated $136 billion in petition-date holdings of…

October 31, 2025
  • News

XRP ETF Coming This November 13 As Canary Capital Submits Updated S-1 By Removing Roadblocks

Asset manager Canary Capital has submitted an updated S-1 filing to bring its spot XRP…

October 31, 2025
  • News

Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch

Canary Funds has filed an updated S-1 registration for its XRP spot exchange-traded fund (ETF).…

October 31, 2025
  • News

CFTC, SEC Launch ‘New Era of Collaboration’ to Clarify Crypto Rules, End Regulation by Enforcement

The U.S. Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) have entered…

October 31, 2025
  • News

Senate Committee Finalizes Updated Crypto Market Structure Bill Draft, Release Expected In Days

The U.S. Senate committee is set to release an updated draft of the Crypto Market…

October 30, 2025