San Francisco Federal Reserve Bank President Mary Daly said Wednesday that she "fully supported" the decision by the Fed to cut its policy rate last week and that further reductions would likely be necessary.

"Growth, consumer spending, and the labor market had slowed, and inflation had risen less than expected, remaining largely confined to sectors directly affected by tariffs" Daly said of the Fed's quarter-of-a-percentage-point interest rate cut on September 17, its first policy rate reduction all year. "The risks to the economy had shifted, and it was time to act."

Fed policymaker projections released at the meeting showed most expect at least one more quarter-point cut this year, and the largest number expect two more.

"Moving forward, it is likely that further policy adjustments will be needed as we work to restore price stability while providing needed support to the labor market," Daly said in remarks prepared for delivery to students at the University of Utah’s David Eccles School of Business.

The Fed's projections, however, are not promises, she added, noting that the Fed's goals are to maintain maximum employment and price stability. "Making good decisions will require us to anchor on our objectives, assess the tradeoffs, and decide, again and again," she said.

Daly had previously said she felt two quarter-point rate cuts this year was a reasonable forecast. On Wednesday she did not provide an update to that view.