San Francisco Fed President Daly: Inflation has spread to services, interest rate hikes may be needed

San Francisco Fed President Mary Daly said U.S. inflation has broadened beyond energy and goods into services, warning that further interest-rate increases could be warranted if price pressures persist. She stressed that policymakers should not rush, signaling a data-dependent approach to any additional tightening. The remarks matter because they push back against expectations that the Fed's hiking cycle is finished, keeping the path of rates uncertain. Investors will watch upcoming services inflation and labor data, along with Fed communications, for signals on whether another hike is likely.