Fed/Daly: Two interest rate cuts this year are a reasonable expectation.

San Francisco Fed President Mary Daly stated that she still considers two interest rate cuts this year to be a "reasonable" forecast. She indicated that local business and community leaders in Alaska expect tariffs to increase costs and are strategizing on how to find temporary solutions. Additionally, she noted the expectation for some taxes to be relaxed over time or for certain exemptions to be allowed.

Daly emphasized, "We have no reason to rush into decisions because policy is in a good place, the economy is in a good place, and therefore we can take the time needed to truly assess the overall impact, understand the scope, magnitude, and timing of final tariff packages, and then learn about the impact on the economy." Last week, U.S. central bankers kept the policy rate in the range of 4.25%-4.50%, signaling that a two-quarter-point rate cut would be appropriate by year-end.