San Francisco Fed President Mary Daly said on Wednesday that they are not yet done with the fight against high inflation, as reported by Reuters.

Additional takeaways

"We are committed to get it down closer to our 2% target."

"Markets are ahead of themselves in expecting rate cuts next year."

"We are united in delivering on both sides of our mandate."

"In my book, 3.4% is a reasonable place for us to get to on rates by year-end."

"June Fed projections remain a reasonable guide for rate path."

"What happens at remaining meetings this year depends on incoming data."

"The early glimmers of progress on inflation really need to show through in the data."

"I am optimistic we can get inflation down with a rate path that does not trigger a deep recession."

"Nothing in the lines of sight right now that indicates the soft landing outcome is not possible."

"I do not think we should ratchet up rates fast and high only to lower rates a few months after that."

"That would be hard on families and businesses."

"Holding rates high for a while could be longer than the period the markets had begun to price in for rate cuts."

Market reaction

The US Dollar Index clings to daily gains after these comments and was last seen rising 0.32% on the day at 106.68.