Federal Reserve Daly said on Tuesday that if inflation falls back as expected, the Federal Reserve will cut interest rates further. Daly commented that if inflation weakens as expected by the Federal Reserve, “I think it would be reasonable to cut interest rates once or twice this year.” However, she said the Federal Reserve may take less or more action on interest rates, depending on the data.

Federal Reserve Daly said on Tuesday that if inflation falls back as expected, the Federal Reserve will cut interest rates further. Daly commented that if inflation weakens as expected by the Federal Reserve, “I think it would be reasonable to cut interest rates once or twice this year.” However, she said the Federal Reserve may take less or more action on interest rates, depending on the data.