The Federal Reserve's Daly: Two rate cuts are expected this year, but we should hold steady for now.

On May 30, Jin10 reported that The Federal Reserve’s Daly stated on Thursday that the Fed’s policymakers still have the possibility of cutting interest rates twice this year, as they had anticipated in March, but the current Intrerest Rate should remain stable to ensure that inflation reaches the Fed’s 2% target. Daly said, “As long as the inflation rate is above the target, and there is some uncertainty about how quickly the inflation rate can return to 2%, then the inflation rate will be my focus, as the labor market is very robust. We need moderately restrictive policies to continue achieving price stability.” The U.S. Trade Court ruled on Wednesday to block many of Trump’s tariff measures, and on Thursday, an appeals court overturned that ruling, highlighting the uncertainty in trade policy, which many businesses and the Fed are concerned about. Daly mentioned that over time, the situation may gradually become clearer.