The Fed's Mary Daly says rate hikes should continue until inflation is tamed

cnbc.com:

San Francisco Federal Reserve President Mary Daly said Wednesday she backs raising interest rates aggressively until inflation comes down to a reasonable level.

Those moves likely would entail multiple 50 basis point hikes at coming meetings, then a possible rest to see how the central bank policy tightening is combining with other factors to impact the massive surge in consumer prices.

«We need to that expeditiously, and I see a couple of 50 basis point hikes immediately in the next coupe of meetings to get there,» she told CNBC's Steve Liesman during an interview on "TechCheck." «Then we need to look around and see what else is going on.»

Daly said she sees some initial signs of a slowing economy and reduced inflation, but will need to see much more progress before the Fed can slow its efforts.

«We aren't really there yet, so we need to see those data on a slowing economy bringing demand and supply back in balance, and I need to see some real progress on inflation,» she said. «Otherwise, I would think we just move the rate until we find ourselves at least at neutral and then we look around to see what else needs to be done.»

So far this year, the Fed has enacted two rate increases totaling 75 basis points, including a 50 basis point increase in May.

Multiple officials have said the 50 basis point moves are likely to continue for a Fed that usually likes to hike at half that level. Though inflation measures such as the consumer price index and Fed's preferred core personal consumption expenditures have come off their recent highs, they are still near levels last see in the early 1980s.

«I don't meet anyone, contacts, consumers, anyone, who thinks the economy needs help from the Fed right now,» Daly said. «I certainly am