FED'S DALY: WILL HAVE TO TIGHTEN POLICY FURTHER

San Francisco Fed President Mary Daly said policymakers will need to tighten monetary policy further, signaling that the current restrictive stance is not yet sufficient to bring inflation back to target. The transmission mechanism runs through the rate path: a reiteration of additional hikes lifts expectations for the terminal fed funds rate, which widens the front-end yield curve and pushes real yields higher, tightening financial conditions across the economy. Rate-sensitive assets are most exposed, including long-duration Treasuries, growth equities whose valuations are discounted at higher rates, and interest-sensitive sectors such as housing and regional banks facing funding pressure. Traders should watch the next consumer price index release for evidence of whether core services inflation is easing, since a hot print would validate further tightening and reinforce upward pressure on short-term yields, while a soft print would test how firmly the market prices the Fed's guidance.

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

Active traders typically follow a three-step workflow when a market-moving headline hits the wire: (1) read the headline on the terminal or hear it on the squawk box; (2) assess whether the news is already priced in (by checking intraday price action in the seconds before) or whether it's genuinely new information; (3) act — either entering a breakout position, fading an overreaction, or tightening stops on existing trades. Trading News Terminal's Pro plan delivers wire-grade headlines within seconds of the source, with automatic audio squawk on every HIGH-impact event, so the read-assess-act cycle never waits on a refresh button.