Fed's Daly: The time is now to step down on the pace of rate hikes

This is an important comment from Daly because she's often a mouthpiece for Powell. At the same time, she's also talking about a higher terminal rate.

• My own forecast was for Fed funds to peak at 4.90%
• We will probably need to tighten more than the Sept dots plot suggested
• We need to mindful of cumulative tightening and the impact on financial conditions
• My forecast is that inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is likely above target at the end of 2023
• Likely some more rate hikes in our future
• The real conversation should be about the level at which we hold the interest rate
• About 50% of excess inflation comes from demand, the rest comes from supply

This is in fitting with the Fed pausing somewhere near 5% but with today's CPI report, the market has shifted the peak to 4.86% from 5.11% last week.