Fed Officials Emphasize the Need for Further Rate Hikes to Tackle Inflation

Two Federal Reserve officials, Cleveland Fed President Loretta Mester and San Francisco Fed President Mary Daly, have stated that more rate hikes are needed to address persistent inflation. Mester suggested that rates should move up "somewhat further" and be held at that level to gather more data, while Daly advocated for two more rate hikes this year. Both officials expressed concerns about potential credit tightening from bank failures earlier this year, although there is currently limited evidence of stricter lending practices. The Federal Open Market Committee will meet later this month to discuss monetary policy.