Tariff-driven Inflation Pressures Show Signs of Easing, Daly Says
Federal Reserve Bank of San Francisco President Mary Daly has observed that inflationary pressures stemming from tariffs are showing signs of easing. This statement aligns with recent Federal Reserve research indicating that the most significant pass-through of tariff impacts on prices had already occurred by early 2026.
The remarks 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.
Recent developments in inflation metrics align with the view that the peak impact of tariffs on prices has diminished.