FED’S DALY SAYS INFLATION PRESSURE IS UP, NOT DOWN, THAT SHE INCREASINGLY HEARS FIRMS SAY THEY WILL PASS ON HIGHER COSTS, AND THAT INFLATION SHOCKS CAN COMPOUND SO THE FED CANNOT BE COMPLACENT, ADDING SHE IS COMFORTABLE WITH THE SEPTEMBER HIKE AND THAT HER BIAS IS THAT FURTHER TIGHTENING WILL BE NEEDED

San Francisco Fed President Mary Daly reported that inflation pressures are rising rather than falling, citing firms increasingly telling her they intend to pass higher costs on to customers, and warned that successive inflation shocks can compound, so the Fed cannot be complacent. She added that she is comfortable with that policy stance. The transmission mechanism runs through inflation expectations and the policy-rate path: pricing pass-through and compounding shocks push out the timeline for rate cuts, which lifts real yields and the expected terminal rate, tightening financial conditions across the curve. Front-end rate expectations and the two-year Treasury yield are most directly exposed, while rate-sensitive equities, particularly long-duration growth names, and the dollar, which tends to firm when US rate expectations rise relative to peers, face the most immediate repricing. The next concrete catalyst is the upcoming Consumer Price Index release, where traders will look for core goods and services components to confirm whether firm-level pass-through is showing up in the data.

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.