San Francisco Fed President and FOMC member Mary Daly on Wednesday said that she is busy thinking about "inflation, inflation, inflation" and that it is unlikely to get inflation back to 2.0% this year, reported Reuters. "I think inflation will start coming down this year," Daly added, noting that she sees inflation at 2.0% in five years. Consumers rebalancing spending from goods to services should help on inflation, she said. 

Earlier, Daly said it would be "prudent" for the Fed to raise the federal funds rate to 2.5% by the end of the year.