San Francisco Federal Reserve President Mary Daly said on Wednesday that the Fed will probably need to raise short-term interest rates further to rein in too-high inflation. She also signalled there is no need to do so at the US central bank's meeting on 27-28 October.
Daly sees no need to rush
In an interview, Daly said: "We are more likely than not to need additional adjustments, but the timing of those adjustments to me is something we're still deliberating." She added: "I don't feel urgent that we have to decide with a limited set of information."
Daly said the risk to inflation had risen, but she argued against acting on that risk early. "The risk to inflation has gone up more, but risks are not realities, and reacting on risk when you have time to make a good decision, to me, feels imprudent," she said.
Consumer prices rose 3.7% in the 12 months through September, according to data released on Wednesday. Higher gasoline prices drove the overall increase, and underlying inflation, while still sticky, did not take a sharp turn upward.
Futures and Williams frame the October meeting
Rate futures put the chance of a second straight Fed hike at the October meeting at about 40%. A move at that meeting would therefore follow the Fed's previous increase.
New York Fed President John Williams said on Tuesday, a day before Daly spoke, that he continues to support one more rate increase this year.