San Francisco Federal Reserve President Mary Daly said the U.S. central bank will "likely need to adjust policy in the coming months," arguing it cannot wait for “perfect clarity” before acting. She described the current stance as requiring recalibration to keep the Fed on track to meet its inflation and employment objectives. Daly noted the labor market has already softened and cautioned that a further slowdown would be unwelcome. She added that the 145% U.S. tariff on Chinese goods, in place since April, is not expected to lift inflation persistently enough to warrant a monetary response. Her remarks underscore an openness within the Federal Reserve’s leadership to alter rates or other tools if economic risks shift.