Fed's Daly Sees Further Rate Hikes After Jobs Beat
October hiring hit 165,000. Bitcoin was near $75,900 at 5:56 p.m. ET Friday, per CoinGecko, after Thursday's $430.2M ETF outflow.
San Francisco Fed President Mary Daly said Friday she expects the Federal Reserve will need to raise interest rates further to bring inflation down, after a jobs report that showed 165,000 hires in October.
"My expectation is we're going to have to tighten policy further. Exactly when and how much is still to be decided," Daly told CNBC. "More is likely to be needed." Bloomberg Law also carried her remarks Friday.
The Bureau of Labor Statistics said the unemployment rate edged to 4.1%. That hiring figure was nearly triple the Dow Jones consensus cited by CNBC. Average hourly earnings rose 3.1% year over year in October, while September consumer price inflation stood at 3.7%.
How Fed speak feeds crypto
When Fed officials lean toward higher policy rates, markets often price firmer Treasury yields and a stronger dollar. Higher yields raise the return on cash and bonds, which can compete with non-yielding assets such as bitcoin for portfolio space. Bitcoin was near $75,900 at about 5:56 p.m. ET Friday, up roughly 0.3% over 24 hours, per CoinGecko. That is a flat reading after a week that already saw U.S. spot bitcoin ETFs shed $430.2 million on Thursday, Farside Investors data shows.
The Federal Open Market Committee raised its overnight target range by a quarter point to 3.75%–4% in September, then held last week to wait for more information. Daly, who votes on the committee next year, said she backed both the September hike and the recent hold. Richmond Fed President Thomas Barkin said Thursday he also sees higher rates ahead but is unsure of the timeline, CNBC reported.
Daly called the jobs report "good news for American workers" while saying households remain on a "treadmill of high inflation" after almost six years of elevated prices. She said real wages are falling because pay is not keeping up with inflation.
Bitcoin held near $75,900 into Friday evening ET, per CoinGecko, with Thursday's $430.2 million ETF outflow still the largest flow print of the week on Farside's table.
Sources: CNBC · Bloomberg Law · CoinGecko · Farside Investors
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