Fed's Daly Suggests More Rate Hikes Possible, Bostic Believes Rates Have Peaked

Fed officials Daly and Bostic express differing views on future interest rate hikes, with Daly suggesting further increases may be necessary to combat inflation, while Bostic believes current rates will eventually bring inflation down to the 2% target.

• San Francisco Fed President Mary C. Daly suggests that further rate hikes may be necessary to combat inflation, stating it's 'far too early to declare victory' over inflation.
• Daly's stance aligns with Fed Chair Jerome Powell's sentiments, indicating that the Federal Reserve should remain ready to act if inflation doesn't fall further.
• Atlanta Fed President Raphael Bostic, however, believes that the current interest rate levels of 5.25% to 5.5% will eventually bring inflation down to the 2% target.
• Bostic argues that the full effect of the rate hikes has yet to filter through the economy, suggesting that more time is needed for the current rates to work.
• Daly points out that while prices of goods have come down, other spending categories, especially shelter costs and core services excluding housing, haven't come down enough, which could necessitate further rate hikes.

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