Fed’s Daly signals potential for more rate hikes amid rising inflation pressures

Federal Reserve Bank of San Francisco President Mary Daly signaled that additional interest rate hikes may be needed to counter rising inflation pressures. The prospect of further tightening could weigh on economic growth by raising borrowing costs and dampening consumer spending, even as policymakers aim to bring inflation back to target. The signal matters for risk assets, including crypto, because higher rates tend to tighten liquidity and pressure valuations across markets. Investors will watch upcoming inflation data and Fed commentary for confirmation of the rate path.