Daly Says More Fed Rates Hikes Likely Needed

San Francisco Fed President Mary Daly said further interest rate increases are likely needed to bring inflation down to the central bank's target, signaling that policymakers have not yet finished tightening. The remark pushes up expectations for the terminal federal funds rate, widening the expected yield differential between U.S. Treasuries and those of other major economies and supporting demand for dollar-denominated assets. The U.S. dollar is the most directly exposed asset, with the greatest sensitivity in pairs against currencies whose central banks are seen as closer to pausing, such as EUR/USD and USD/JPY, where rate-differential repricing tends to dominate short-term moves. Traders will be watching the next Consumer Price Index release and subsequent Fed speaker commentary for confirmation of whether core inflation is cooling fast enough to alter the expected path of hikes.

The US Dollar (USD) is the world's primary reserve currency and the base for most forex majors. Headlines about Federal Reserve policy, US macro data (CPI, NFP, GDP), and Treasury yield shifts typically drive USD pair direction within seconds of release.

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.