Business · Economy · 8 hrs ago
Fed’s Mary Daly Says More Rate Hikes Likely Needed to Cool Inflation
San Francisco Fed President Mary Daly said more rate increases will likely be needed to bring inflation down.
She spoke at Stanford University in California, saying more businesses are considering raising prices to cover higher costs.
Price pressures have spread beyond sectors directly affected by tariffs and energy costs, according to recent data.
US inflation has been above the Federal Reserve’s 2% target for more than five years, and the Fed raised rates in September before holding them steady in October.
Daly said artificial intelligence is adding to price pressures, though its current contribution to overall inflation is limited and could grow.
Several Fed officials have signaled support for another increase in December, while futures markets point to further increases at upcoming meetings.
San Francisco Fed President Mary Daly said further interest-rate increases will likely be needed to bring down inflation.
She said more businesses are considering raising prices to pass on higher input costs.
Daly said inflationary pressure has spread beyond sectors most directly affected by tariffs and oil.
The Fed raised rates in September and held them steady at its October meeting.
Daly also said artificial intelligence could add to price pressures, though its contribution to headline inflation is currently limited.
- Who
- Mary Daly, president of the Federal Reserve Bank of San Francisco.
- What
- She said further interest-rate increases will likely be needed to cool inflation.
- When
- Thursday, November 12, 2026.
- Where
- Stanford’s Economic Policy Research Institute in California.
- Why
- She sees persistent inflationary pressure beyond sectors most directly affected by tariffs or oil, and more businesses are considering price increases.
This story does not have two clearly opposing sides.
The Fed raised interest rates for the first time since 2023.
The Fed held interest rates steady at its meeting.
Daly spoke at Stanford’s Economic Policy Research Institute and said further rate increases would likely be needed.
- Speaker
- Mary Daly
- Role
- President of the Federal Reserve Bank of San Francisco
- Latest rate increase
- September; the first since 2023
- Next Fed meeting mentioned
- December
- AI and inflation
- Its current contribution to headline inflation is limited, but Daly said it could grow
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What people are saying
My view is that more tightening will be needed, because we are seeing persistent pressure on inflation that is not limited to sectors most directly affected by tariffs or oil