President of the Federal Reserve Bank of San Francisco Daly:Two rate cuts this year would make sense if labor market stays solid and inflation falls, but range of possible risks is largeCurrently tilt toward a focus on inflationNeed modestly or moderately restrictive policy to keep bringing down inflationLooking for signs inflation is continuing to fall, or if it’s rising or stays stickyAlso looking for any weakening in job market, not seeing anyNot facing policy tradeoffs nowFed is agile, policy well-positionedBusinesses are not stalled in the face of uncertainty, though taking fewer risksKeeping Fed policy rate steady is an active decisionDaly was speaking in an interview with Reutersafter an appearance at the Oakland Rotary Club. Her earlier comments at the Club are here:Fed's Daly says workers are worried about inflationAs with her Fed colleagues, there is no sign here from Daly of any imminent rate cut. This article was written by Eamonn Sheridan at www.forexlive.com.