Fed's Daly: It is not surprising that the market expects no interest rate cut this year.

Federal Reserve Bank of San Francisco President Daly said that in the case of an oil shock, she would not be surprised if the market's expectations reflected no interest rate cuts this year. Daly stated that in the March economic forecast summary, the median forecast among policymakers was for one interest rate cut this year. However, Daly said during a speech at the Fisher Center for Real Estate and Urban Economics at UC Berkeley on the 2026 Spring Policy Advisory Committee meeting, "If the market's expectations are for no interest rate cuts this year, I would not be surprised." She added that this reflects the market's expectation that the oil shock would continue at least until the end of this year.