Fed's Daly: Rates May Not Need to Rise Further If Conditions Stay Tight

San Francisco Fed President Mary Daly said if long-term bond yields stay around current levels, the Fed may not need to raise rates again.

Daly noted that tight financial conditions, slowing job market and inflation could reduce the need for more Fed action.

Fed has raised rates 11 times since March 2022 in aggressive campaign to curb high inflation.

Daly says she's watching lag effects of previous hikes, believes they're still moving through economy.

Holding rates steady can be considered active tightening as real rates rise with lower inflation, says Daly.