Daly: Tariff Impact on Inflation Starting to Fade

Federal Reserve Bank of San Francisco President Mary Daly said there are signs that tariffs' impact on inflation is starting to fade, offering a cautious note of optimism about the path of price pressures.

Daly's remarks come amid ongoing debate about the economic effects of tariffs imposed by the current administration. Since 2025, tariffs have contributed to higher consumer prices, complicating the Federal Reserve's fight against inflation.

However, Daly's observation aligns with a recent moderation in some price categories, such as durable goods and certain raw materials, which had initially spiked after tariff announcements. Economists have noted that businesses may have front-loaded price increases, and the fading impact could reflect a normalization as supply chains adjust.