Fed Official: Neutral Rate Likely Higher Than Before Pandemic But Below Current Levels

Fed's Daly says neutral interest rate could be higher than pre-pandemic, but not as high as current rates.

Daly estimates neutral rate between 2.5-3%, up from pre-pandemic estimate of 2.5%.

Economy has shown resilience to Fed's aggressive rate hikes.

Daly says higher Treasury yields may reduce need for more hikes.

Markets show less than 20% chance of another 0.25% rate hike at next Fed meeting.