Fed's Daly: 50 or 75 bps hike reasonable for September

In an interview with CNN on Thursday, San Francisco Fed President Mary Daly reiterated that it was way too early to declare victory on inflation, as reported by Reuters.

Daly further noted that core services inflation was still rising while adding that they will continue to raise the rates to "right-size it." Regarding the September rate decision, Daly said either a 50 basis points or a 75 basis points hike would be appropriate.

Market reaction

The US Dollar Index edged slightly higher on these comments and was last seen rising 0.12% on the day at 106.78.