Daly sees no rush to raise interest rates
San Francisco Federal Reserve President Mary Daly said additional interest rate hikes may be necessary to bring elevated US inflation under control, but there is no urgency to act at the October 27–28 meeting.
Speaking to Reuters, Daly noted that the timing of further rate increases remains under consideration and that waiting for more information would be preferable to making decisions based on limited economic data. The Fed's benchmark interest rate currently stands at 3.75%–4.00%.
Commenting after annual US inflation rose to 3.7% in September, Daly said higher gasoline prices had contributed to rising consumer prices. She emphasized that core inflation remains elevated but has not shown a sharp acceleration. Daly also pointed out that mortgage rates of around 7.5% are weighing on economic demand. Her remarks suggest that the Fed could raise interest rates later, while potentially keeping rates unchanged at its October meeting.
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