US Federal Reserve's Mary Daly Sees More Rate Hikes Ahead, but Not Necessarily in October
Daly said inflation remains too high, and traders now see about a 40% chance of another Fed hike at the next meeting.
- San Francisco Federal Reserve President Mary Daly said Wednesday the Fed likely needs more interest rate hikes to curb inflation, though she signaled it is unlikely to raise rates at the October 27-28 meeting.
- Daly's comments followed data released Wednesday showing consumer price inflation accelerated to 3.7% in the 12 months through September, faster than economists anticipated.
- The Fed's policy rate sits between 3.75% and 4.00%, with 7.5% mortgage rates dampening demand; Daly noted the labor market's stability gives the central bank room to focus on price stability.
- Financial market pricing now puts about a 40% chance of a rate hike at the next meeting; though the initial reaction was "robust," investors "calmed" after parsing through Wednesday's data.
- Several of Daly's colleagues have also signaled in recent weeks that the Fed is unlikely to raise rates this month, and Daly told Reuters she does not "feel urgent that we have to decide with a limited set of information.
16 Articles
16 Articles
The Federal Reserve (Fed, U.S. Central Bank) will probably need to further increase short-term interest rates to contain excessively high inflation, said San Francisco Fed President Mary Daly, but she signalled that there is no need to do so at the Central Bank meeting scheduled for 27 and 28 October. It's more likely that we need additional adjustments, but for me, the right time for these adjustments is still being deliberate, said Daly to Reu…
(Seoul = Yonhap News) Reporter Lee Seong-han = Mary Daly, President of the U.S. Federal Reserve Bank of San Francisco, said on the 14th (local time) that the Federal Reserve [will] additionally...
New Strait Times
BizTocFed's Daly says rate hikes likely needed, but not urgently
The Economic Times
Times of IndiaUS Federal Reserve's Mary Daly sees more rate hikes ahead, but not necessarily in October
San Francisco Federal Reserve President Mary Daly indicated that further adjustments to interest rates might be necessary to address inflation. She emphasized that the Fed does not feel urgency for immediate action in the upcoming meeting. Daly highlighted the stability of the labor market, which offers some flexibility for monetary policy decisions. Financial markets are reflecting a range of expectations regarding potential rate hikes in the near term.
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