Fed/Daly: More interest rate hikes may be necessary

San Francisco Fed President Mary Daly stated that the US Federal Reserve (Fed) may need to increase interest rates further to control the high inflation in the US.

Daly made evaluations about the outlook for monetary policy and the sales in technology stocks in his interview with CNBC on Friday.

Pointing out that inflation is still at high levels, Daly stated that additional tightening in monetary policy may be needed to reduce price pressures.

"My expectation is that we will have to tighten monetary policy even further," Daly said.

However, Daly stated that a clear assessment cannot yet be made regarding the timing and size of possible interest rate increases.

Message of gradual action in monetary policy

Emphasizing that the global economic environment displays a volatile outlook in many aspects, Daly said that more information is needed in monetary policy decisions and a cautious approach should be adopted.

Daly said, "You need to take these volatilities into account, collect more information and act cautiously but more gradually when reaching the goal when you don't know exactly where you need to get to. But it will probably need more. If this is what the economy needs, we are definitely ready for it, I am ready for it."

On the other hand, Daly also evaluated the price movements in technology stocks as investors re-evaluated the risks related to the increase in demand caused by artificial intelligence.

Admitting that the repricing in technology stocks is painful, Daly stated that the process is progressing regularly.