Key facts
- Daly said on CNBC her expectation is that the Fed will have to tighten policy further.
- Daly said the timing and size of any further tightening are not yet clear.
- Daly called the technology stock repricing painful but orderly, tied to investors reassessing AI demand growth risks.
- Daly said she is prepared to tighten if the economy calls for it, urging a deliberate and gradual approach.
Federal Reserve Bank of San Francisco President Mary Daly said on November 6 that she feels the US central bank will likely need to raise rates further to bring too-high inflation down. "My expectation is, we're going to have to tighten policy further," Daly said on CNBC, though she said exactly when and how much is not yet clear.
Daly said the repricing of technology stocks was "painful" but orderly, as investors reassess the risks to AI-driven demand growth. She noted "how volatile the world seems to be in many ways" and said those volatilities have to be taken into account by collecting more information and being deliberate but more gradual when the destination is unclear.
"But more is likely to be needed and certainly we're prepared -- I'm prepared -- to do that, if that's what the economy calls for," Daly said.