Mary Daly said a rate cut is possible if the Iran conflict eases quickly and oil prices fall, while the Federal Reserve would likely wait if inflation remains above expectations.
San Francisco Fed President Mary Daly said an interest rate cut is "not impossible" if the Iran conflict is resolved quickly and oil prices decline. She added that the Federal Reserve would likely hold rates steady if inflation remains higher than expected, and said rate hikes appear less likely than either cuts or keeping policy unchanged. Her comments add a fresh public view to the broader debate over how Middle East tensions and energy prices could influence the Fed’s rate path.