Fed’s Daly Says More Rate Increases Likely Needed to Tame Prices

(Bloomberg) -- Federal Reserve Bank of San Francisco President Mary Daly said more interest rate increases are likely to be needed to tame inflation, but she said it was too soon to know how much higher rates will need to go.

"My expectation is we're going to have to tighten policy further," Daly said Friday in an interview on CNBC. "Exactly when and how much is still to be decided because we just have to take all the variables that are coming in."

Daly said she supported the decision last week to hold the Fed's benchmark rate steady amid uncertainty about the economy, and that she also backed the decision to raise interest rates in September for the first time since 2023. While two policymakers dissented from the decision to hold rates last month because they preferred to raise them instead, several officials have expressed support for moving them up gradually.