#BTC #ETH On November 14, Federal Reserve Bank of San Francisco President Daly said Friday that, given the worsening inflation outlook, the Fed would likely need to raise interest rates further. She noted that core CPI had risen by about 0.3% month over month for three consecutive months, above the 0.2% or lower level consistent with the Fed’s 2% inflation target. She is particularly concerned about the poor trend in services inflation excluding housing, as these prices are typically quite sticky. Businesses’ input costs continue to rise, and more and more producers say their profit margins can no longer absorb the cost pressures and that they are considering passing the costs on to consumers. Daly said she would discuss rate hikes with her colleagues at the December meeting and at future meetings, and that they would make decisions collectively based on economic conditions. The Fed raised rates in September and held them steady in October. Markets currently expect a 25-basis-point hike at both the December 8–9 meeting and the January 26–27 meeting next year. Daly also said that over the next one to three months, she would focus on consumer spending, particularly whether consumers cut back during the holiday season because of rising prices. She said spending remains relatively resilient for now, but there are signs in some areas that consumers may gradually be losing their appetite to spend.