MNI: Fed's Daly Says 50BP Hike Is Possible At Some Point

San Francisco Fed President Mary Daly said Wednesday that while a 25bp rate hike is the most likely option with liftoff starting in March, a 50bp move may still be needed at some point.

“It’s too early to call that we would move at 50 basis points or not,” she said on a media call when asked about going faster. “All of our possibilities are on the table, but my modal outlook, the one that I expect to engage is a 25 basis point increase.”

Daly said she can examine “whether 50 basis point adjustments down the road are necessary." Research suggests that front-loading rate increases isn’t “materially impactful on the economy,” she said. Daly had downplayed the chance of a 50bp rate hike in a Feb. 10 interview with MNI, where she also said she saw at least three rate increases. Earlier on Wednesday she said at least four are now needed to curb the fastest inflation in decades.