Fed’s Daly: Tariff-driven inflation pressures showing signs of easing

Federal Reserve Bank of San Francisco President Mary Daly has indicated that the inflationary effects stemming from tariffs are showing signs of reduction. This statement aligns with recent Federal Reserve research suggesting that the most significant pass-through of tariff impacts on prices had already occurred by early 2026. Daly’s comments come at a time when the Federal Reserve is closely monitoring inflation trends, particularly in the context of its broader economic impact. Market participants appear to interpret this development as potentially easing inflationary pressures, influencing the outlook for U.S. inflation data for July. Key Takeaways Daly’s remarks appear to suggest a reduction in inflationary pressures from tariffs, consistent with recent Federal Reserve findings. Market pricing suggests participants view the potential easing of tariff impacts as supportive of a more favorable inflation outlook for July. Recent developments in inflation metrics align with the view that the peak impact of tariffs on prices has diminished. What to Watch Market observers will be closely watching the upcoming U.S. Bureau of Labor Statistics (BLS) release on July inflation data, which...