Federal Reserve's Daly: Inflation situation is deteriorating, interest rate hikes are necessary.

San Francisco Federal Reserve President Mary Daly stated that the Fed is likely to need to raise interest rates given the deteriorating inflation situation. Core CPI rose approximately 0.3% month-over-month for the third consecutive month, above the 0.2% level required to align with the Fed's 2% inflation target. Inflation in the services sector, excluding housing, is weak, as businesses face rising input costs, and producers are considering passing those costs on to consumers. Daly will discuss interest rate hikes with his colleagues at the December meeting and future meetings, and will make a decision based on the economic situation. The focus over the next one to three months will be on monitoring consumer spending. Currently, consumption is showing strong resilience, but some regions are showing signs of a gradual loss of consumer spending momentum. (Source: Jinshi Data)