Mary Daly Signals Further Federal Reserve Rate Hikes

Federal Reserve Bank of San Francisco President Mary Daly stated on November 6 that the U.S. central bank will likely need to raise interest rates further to reduce high inflation. Speaking on CNBC, Daly noted that while she expects to tighten policy further, the specific timing and magnitude of these hikes remain unclear.

Daly described the current repricing of technology stocks as painful but orderly, as investors re-evaluate risks linked to AI-driven demand growth. She emphasized that the Federal Reserve must remain deliberate and gradual in its approach to rate adjustments.

This cautious strategy is intended to account for global volatility and the need to collect more information before determining the final destination of policy tightening.