News report 💱 Forex 🌍 United States

Fed’s Daly Signals Further Rate Hikes as Inflation Pressures Persist

San Francisco Fed President Mary C. Daly signaled a bias toward further rate hikes on Friday, citing persistent inflation and rising producer costs as primary drivers for a restrictive monetary policy stance.

📅 November 13, 2026 🕐 1 min read

3 assets impacted (Forex, Bonds). Net bias: 2 Bullish, 1 Bearish, 0 Neutral. Strongest signal: USD ↑ 5/10 (70% confidence).

📊 Affected Assets (3)

USD

Bullish 🤖 70%

📅 Short-term 🌍 US · Explicit

San Francisco Fed President Daly said on Friday the bias is that rates need to go up and 'in all likelihood we will need to raise rates,' with inflation the key problem and more producers passing on costs. A higher rate path makes the Dollar more attractive to hold. The USD was already the day's strongest major currency, up 0.49% versus CHF and 0.43% versus CAD.

Catalysts

▲ Daly's Friday comments that rates need to go up and a rate hike is likely
▲ Daly flagging more producers wanting to pass on costs, keeping inflation pressure alive

Risk Factors

▼ Daly downplayed the Summary of Economic Projections, limiting forward guidance weight
▼ It is hard to say whether policy is restrictive enough, leaving the path uncertain

EUR/USD

Bearish 🤖 60%

📅 Short-term 🌍 US ✨ Inferred

Daly's hawkish comments imply a higher US rate path, which typically strengthens the Dollar against the Euro. The pair already fell 0.25% on the day as the USD strengthened broadly, and further repricing of Fed rate expectations could weigh on EUR/USD in the coming days.

Catalysts

▼ Daly's Friday statement that 'in all likelihood we will need to raise rates'
▼ EUR/USD already down 0.25% on the day amid broad USD strength

Risk Factors

▲ One official's remarks may not shift overall Fed policy expectations
▲ Daly said it is hard to say whether policy is restrictive enough, leaving room for interpretation

US10Y

Bullish 🤖 55%

📅 Short-term 🌍 US ✨ Inferred

A Fed regional president saying the bias is that rates need to go up and that a hike is likely points to tighter monetary policy ahead. Higher expected policy rates typically push benchmark Treasury yields up, with the 10-year the most widely watched benchmark.

Catalysts

▲ Daly's hawkish comments on Friday that rates need to go up
▲ Sticky inflation described as the 'key problem' with no improvement in services ex-housing inflation

Risk Factors

▼ Daly dismissed the Summary of Economic Projections as 'just a point in time'
▼ Uncertainty over whether policy is already restrictive enough could temper the yield move

🧭 Full analysis of these assets

🎯 Key Takeaways

San Francisco Fed President Mary C. Daly stated the bias is that rates need to go up, noting that in all likelihood the Fed will need to raise rates.
Daly identified inflation as the key problem for the US economy, specifically noting that services ex-housing inflation is not moving in the right direction.
The US Dollar strengthened on the news, recording a 0.49% gain against the Swiss Franc and a 0.25% rise against the Euro on Friday.
Daly observed that producers are increasingly looking to pass on costs, contributing to the inflationary environment.

📝 Executive Summary

San Francisco Fed President Mary C. Daly stated on Friday that the central bank will likely need to raise interest rates further to combat persistent inflation. Daly highlighted that producers are increasingly seeking to pass on costs, while services inflation excluding housing remains a key concern for the FOMC.

❓ FAQ

USD · Why does Daly's rate hike signal support the Dollar?

Higher interest rates make the US a more attractive place for investors to park money, which strengthens the US Dollar, as described in the Fed FAQs in the article.

EUR/USD · How do Daly's comments affect the EUR/USD exchange rate?

If markets expect the Fed to raise rates, the Dollar tends to strengthen relative to other currencies, pushing EUR/USD lower.

US10Y · Why would Treasury yields rise after Daly's remarks?

Signals of future Fed rate hikes raise expectations for overall interest rates, which usually lifts government bond yields.

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