Mary Daly says further Fed rate hikes are likely as inflation stays high

San Francisco Federal Reserve Bank President Mary Daly said the central bank may need to raise interest rates further to control inflation, though she said the timing and pace of any moves remain unclear and favored a cautious, data-driven approach. She called persistent inflation the main economic problem and said a strong labor market lets the Fed focus on price stability. The Bureau of Labor Statistics reported 165,000 jobs added in October, above expectations, while hourly pay rose about 3.1% annually, below September’s 3.7% consumer price increase, so real wages fell. The Fed raised its benchmark rate by 25 basis points in September to 3.75%–4% and held it in October; other Fed officials also signaled support for or expectations of higher rates.