Federal Reserve Bank of San Francisco President Mary Daly said on July 2 that inflation should begin to slow, while cautioning that the economic outlook remains clouded by significant uncertainties.
For crypto and broader risk asset investors, the message is worth parsing carefully. Fed officials telegraphing confidence in disinflation, even qualified confidence, tends to shape expectations around interest rate policy.
What Daly actually said
Daly’s core message was straightforward: inflation is expected to decelerate. Throughout 2026, Daly has pointed to specific pressure points, including tariffs and energy price fluctuations, as ongoing inflation drivers. Geopolitical disturbances, particularly the ongoing conflict in Iran, have added another layer of unpredictability.
Rather than committing to a fixed policy path, Daly has advocated for a flexible, scenario-based approach to monetary policy. This framing is consistent with themes Daly has been developing since at least 2024, when she began publicly emphasizing conditional monetary policy.
