Fed’s Daly Says More Rate Hikes Likely Despite Painful Tech Sell-Off

Direct answer

San Francisco Federal Reserve President Mary Daly said on Friday, November 6, 2026, that the US central bank will likely need to raise interest rates further to bring inflation down. She said this even as technology stocks were going through what she called a painful sell-off. In her words, “My expectation is, we’re going to have to tighten policy further”, although exactly when and by how much is not yet clear.

What happened

Daly spoke to CNBC on Friday, after the October jobs report showed much stronger hiring than expected. We covered that data in our post on the US jobs report beating forecasts as employers added 165,000 roles in October. Employers added 165,000 jobs, far above the 65,000 economists had expected, and the unemployment rate slipped to 4.1% from 4.2%.

Daly said the strong jobs report was good news for American workers, and that a strong labor market gives the Fed room to focus on inflation. She backed the Fed’s decision last week to hold its benchmark rate steady at 3.75% to 4.00%, saying the hold was the right move at the time. But she was clear about the direction: more tightening is likely to be needed, and she is prepared to raise rates if the economy calls for it.

She also addressed the market turmoil directly. The Nasdaq had fallen 5.52% on Thursday, its worst day since April 2025, and entered correction territory. Daly called the repricing of technology stocks painful, but orderly, and said it would not on its own stop the Fed from tightening. She added that the Fed should be deliberate and more gradual when the outlook is uncertain, taking in more information before deciding how far to go.

Her message fits with what other Fed officials have said this week. New York Fed President John Williams said on Friday that inflation is “absolutely too high” and must be brought back to the Fed’s 2% goal, as we covered in our post on Fed’s Williams saying inflation is still too high. Markets responded by raising the odds of a quarter-point rate hike at the Fed’s December 8 to 9 meeting to about 78%, according to the CME FedWatch Tool.

Why it matters for beginners

When a Fed official says more rate hikes are likely, it matters because interest rates touch almost everything in personal finance. Higher rates usually mean higher borrowing costs for mortgages, credit cards, and car loans, and they can also mean better returns on savings accounts. If you want a refresher on how interest rates work for savers, see our guide on what APY is and why it is different from an interest rate.

Daly’s comments also show how the Fed balances two jobs at once. Strong hiring is good for workers, but it can keep prices rising if spending stays hot. At the same time, falling stock prices can make people nervous, yet the Fed’s main job is stable prices, not propping up the stock market. That is why Daly could call the tech sell-off painful and still say more hikes are likely.

For beginners, the useful point is that one official’s remark is not a decision. The Fed decides as a committee, and its next meeting is December 8 to 9. Daly herself said the timing and size of any move are still to be decided. Markets can move sharply on these remarks, as they did this week, but a single day’s move does not tell you what will happen next.

What to watch next

Watch the October consumer inflation data, due on Tuesday, November 10. That number will shape the Fed’s December decision more than any single speech. Also watch what other Fed officials say in the coming days, and whether technology stocks steady after Friday’s rebound, when the Nasdaq rose about 1.7%, as we covered in our post on US stocks rebounding on Friday. If inflation comes in hot again, December hike odds could climb further. If it cools, the Fed may have more room to wait.

FAQ

Who is Mary Daly?

Mary Daly is the president of the Federal Reserve Bank of San Francisco. She speaks for her regional Fed bank and takes part in the Fed’s policy discussions. She is not a voting member of the rate-setting Federal Open Market Committee in 2026, but she becomes a voting member in 2027.

What does it mean to tighten policy?

Tightening policy means raising interest rates, or keeping them higher for longer, to slow spending and bring inflation down. The opposite, easing policy, means cutting rates to support growth. The Fed raised rates in September 2026 and then held them steady at its October meeting.

Why would the Fed raise rates when stocks are falling?

The Fed’s main job is keeping inflation near 2%, not keeping stock prices up. If inflation stays too high, the Fed may raise rates even while markets are falling. Daly described the tech sell-off as painful but orderly, which suggests she does not see it as a reason to change course on inflation.

What are the odds of a December rate hike now?

After the strong jobs report and the latest Fed remarks, traders were pricing about a 78% chance of a quarter-point hike at the Fed’s December 8 to 9 meeting, according to the CME FedWatch Tool. That figure moves every day as new data arrives, so it is a snapshot, not a promise.

Sources

Reuters, “Daly says Fed rate hike likely, despite ‘painful’ tech-stock dive”, November 6, 2026, https://duke.fm/2026/11/06/daly-says-fed-rate-hike-likely-despite-painful-tech-stock-dive/

Bloomberg Tax, “Fed’s Daly Says More Rate Hikes Likely Needed to Tame Prices”, November 6, 2026, https://news.bloombergtax.com/social-justice/feds-daly-says-more-rate-increases-likely-needed-to-tame-prices

This article is for general information and education only. It is not legal or financial advice.