Daily leans toward need for additional tightening... inflation pressures beyond tariffs and oil

San Francisco Fed President Mary Daly said on May 12 that she is leaning toward the need for further tightening, though she stressed the remark does not mean a rate hike has been decided. Speaking at a Stanford economic policy event covered by Bloomberg, Daly said inflationary pressure is persisting beyond categories directly exposed to tariffs or oil, and cited the broadening of price pressures as the reason for her tilt. She noted that firms are increasingly signaling they must pass higher input costs through to consumer prices. The comments matter because they suggest the Fed's easing bias may be giving way to a longer hold or renewed tightening if cost pass-through continues. Watch upcoming inflation prints and corporate pricing commentary for confirmation that price pressures are spreading beyond tariff- and energy-linked goods.