NEW YORK (Reuters) – San Francisco Federal Reserve Bank Leader Mary Daly said on Monday she still expects the U.S. central bank to raise interest rates further and could raise its rate target to around 5 percent.
While the end state of the central bank’s rate hike campaign is “not set in stone,” the Fed is still likely to hit around 5%, or somewhere between 4%. 75% and 5.25%, Daly said in remarks to the Orange County, California, Business Council.
The current federal funds rate is between 3.25% and 4%. The Federal Open Market Committee, which sets interest rates, is almost certain to raise it when it meets next month.