Fed's Daly: I see more rate increases as necessary

San Francisco Fed President Mary Daly reiterated on Wednesday that the Fed is resolute at raising rates to restrictive territory, as reported by Reuters.

Additional takeaways

"We are committed to bringing inflation down, staying course until we are well and truly done."

"I don't see a hump shape in rates, I see us raising rates, holding them there until we get inflation close to 2%."

"More policy adjustments are required to get it restrictive."

"I see more rate increases as necessary."

"Expect inflation to end next year closer to 3% than 2%."

"Have to be prepared for inflation to be more persistent than we expect."

"Still seeing about 50% of inflation coming from demand."

"Markets are finding their footing."

"For us, the path is clear: we are going to raise rates to restrictive territory, then hold them there for a while."

"We don't raise rates until something breaks."

"We are constantly calibrating to risks."

"If market dislocation comes about, we would be prepared to address it."

Market reaction

The dollar rally continues following these comments and the US Dollar Index was last seen rising 1.3% on the day at 111.65.