San Francisco Fed President Mary Daly told Reuters in an interview on Wednesday that the Federal Reserve will probably need to raise short-term rates further to rein in inflation that remains too high, but she signalled there is no need to do so at the October 27 to 28 meeting, saying the timing of further adjustments is still being deliberated and there is no urgency to decide on a limited set of information. Daly linked the September headline inflation reading of 3.7 percent mainly to gasoline prices, described core inflation as sticky in line with her expectations, and said a stable labour market lets the Fed concentrate on price stability. Earlier on Wednesday, Chicago Fed President Austan Goolsbee took a more anxious tone in a Yahoo Finance interview reported by Reuters, calling the September CPI data discouraging and pointing to services inflation above 5 percent showing little sign of improvement, while stopping short of prescribing a near-term policy response.
Daly sees further hikes likely, but not in October
San Francisco Fed President Mary Daly told Reuters on Wednesday that further rate increases are more likely than not to be needed to rein in inflation, but she signalled no need to move at the October 27 to 28 meeting.
Why it matters: Daly is the clearest post-CPI pushback yet against market pricing for an October hike, keeping December as the live meeting while confirming the committee still expects to tighten further.
Data as of Wednesday, October 14, 2026, early evening Toronto time. Daly spoke in an exclusive Reuters interview published Wednesday afternoon; both Reuters reports were read in full. Developing item, 2 to 3 sentences by design.
Sources
- Exclusive-Fed's Daly says rate hikes likely needed, but not urgently · Reuters via SRN News · 2026-10-14
- Fed's Daly: more rate hikes likely needed, but no urgency to move in October · investingLive · 2026-10-14
- Fed's Goolsbee says September CPI data was discouraging · Reuters · 2026-10-14