Fed’s Daly: Worsening Inflation Likely to Require Further Rate Hikes

Cointime update: San Francisco Fed President Mary Daly said Friday that the Federal Reserve will likely need to raise interest rates further given worsening inflation. She cited core CPI rising about 0.3% month-over-month for three straight months, above the 0.2% or lower consistent with the Fed’s 2% target, and flagged sticky services inflation excluding housing. Daly said she will discuss hikes at the December meeting and beyond; markets expect 25-basis-point increases at the December 8-9 and January 26-27 meetings.