US annual inflation in JulyMary Daly, President of the Federal Reserve Bank of San Francisco, has stated that the job market is unlikely to cause significant inflation pressure. Earlier in 2026, Daly had described the labor market as “precarious” and noted a case for rate cuts, acknowledging that inflation remained above the Fed’s 2% target. Daly’s latest remarks appear to suggest she sees the labor market as a limited factor in driving inflation upwards. Current inflation pricing reflects a nuanced view of labor market impacts on inflation. Any deviation from expected inflation rates could prompt significant market reactions.