Americans are on a ‘treadmill of high inflation’ and more rate hikes are likely, Fed’s Daly says

San Francisco Federal Reserve president Mary Daly said Americans remain caught in a prolonged spell of high inflation, which is eroding the value of their wages. She is more concerned about inflation’s persistence than economic growth, and thinks further interest rate rises are likely as the Fed works to bring price pressures down.

Daly said the job market is stable but not booming, while wages are failing to keep pace with inflation. In September, the Federal Open Market Committee raised its benchmark rate by a quarter of a percentage point to a range of 3.75% to 4%; it held rates steady at its latest meeting, citing uncertainty and a need for more information. Daly supported both decisions and favours a gradual approach.