Fed Strategy: Advancing Interest Adjustments with Caution

The President of the Federal Reserve Bank of San Francisco, Mary Daly, reiterated the need to further lower interest rates in the USA. However, she cautioned against rushing, to maintain the balance between full employment and price stability, the two main objectives of the central bank. Daly emphasized at the 2025 Western Bankers Forum of the San Francisco Fed that over time, some adjustments will be necessary to optimally align the key interest rate. "Proceeding too quickly could jeopardize one of the goals," Daly stated. "A slow, data-driven approach, on the other hand, enables both goals to be successfully achieved.