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Fed's Daly says more rate hikes likely after jobs beat

San Francisco Fed President Mary Daly told CNBC Friday that the central bank will likely need to raise rates further to cool inflation, even after employers added 165,000 jobs in October and chip stocks partly rebounded from Thursday's AI rout.

By US Brief desk · Updated 2026-11-06T17:10:00-08:00

AI-assisted · US Brief desk · Sources listed below

Front entrance of the Marriner S. Eccles Federal Reserve Board Building in Washington, D.C.

What happened

San Francisco Federal Reserve President Mary Daly told CNBC's Steve Liesman on Friday that she expects the Fed will have to tighten policy further. "My expectation is we're going to have to tighten policy further. Exactly when and how much is still to be decided," she said. "More is likely to be needed, and certainly … I'm prepared to do that if that's what the economy calls for." Reuters summarized the same CNBC interview, noting she called the tech-stock repricing "painful" but orderly.

Why it matters

A hot payroll print lands the same week Democrats took Congress on affordability themes, and one day after the Nasdaq fell about 5.5% into a correction on AI and data-center fears. Daly's message is that labor strength gives the Fed room to keep fighting prices — even if that keeps pressure on mortgages, credit cards, and rate-sensitive stocks.

What’s next

Tuesday's October CPI print, how Treasury yields hold the jobs shock, and the Fed's Dec. 8–9 meeting. The next Employment Situation is due Dec. 4.

More context

Jobs backdrop: The Bureau of Labor Statistics said Friday that nonfarm payrolls rose by 165,000 in October and the unemployment rate changed little at 4.1%. Economists had expected roughly 59,000 to 65,000 jobs, CNBC and Fox Business reported. Average hourly earnings rose 0.4% on the month and 3.1% over the year. Daly called the report "good news for American workers" but said wages are still not keeping up with inflation; she cited September CPI at 3.7% versus that 3.1% annual wage gain.

Original layer — treadmill vs. rebound day: Daly said Americans "are on a treadmill of high inflation" and that high prices have lasted "almost six years." Fox Business said the Nasdaq still closed Friday up 1.09% as Nvidia rose 2.8% and AMD jumped 11%. The Fed's read of the same day is different from dip-buyers': stable jobs are not proof that paychecks are catching up, so more tightening remains on the table.

Policy path: The Federal Open Market Committee raised its target range by a quarter point to 3.75%–4% in September, then held at its most recent meeting to wait for "the accumulation of more information," CNBC reported. Daly said she supported both the September hike and the subsequent hold, and still favors a gradual approach amid volatility. Richmond Fed President Thomas Barkin also sees higher rates ahead but is unsure of the timeline, CNBC said.

Weak spot / What the evidence shows: Daly said she will vote on the FOMC next year, so she is not a 2026 voter. Futures already moved on the jobs print: CNBC said CME FedWatch odds of a December quarter-point hike sat around 76.8% after the report. Her interview largely confirms what markets priced after 165,000 jobs — it is not a surprise dissent from the committee that just chose to hold.

5 listed sources

References listed by US Brief; a source count is not a verification score.

Editorial sourcing notes

Daly quotes and interview framing from CNBC (Jeff Cox) Nov. 6, 2026, with Reuters paraphrase of the same CNBC appearance. Payrolls, unemployment, earnings, and revisions from BLS Employment Situation — October 2026. Cash closes and AMD/Nvidia moves from Fox Business. CME FedWatch December odds (~76.8%–77%) from CNBC's jobs coverage. FOMC September hike to 3.75%–4.00% and subsequent hold from CNBC. Photos: Eccles Building (Federal Reserve / PD); Daly file photo (CC BY-SA 4.0).

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