San Francisco Fed President Mary Daly told Bloomberg TV overnight that 50bps rate hike “is the case” for September FOMC meeting. But added, “I am open to 75 should the data evolve differently.”

Daly didn’t expect rate cuts to quickly follow the current tightening cycle once inflation is conquered. “I don’t see this hump-shaped part where we raise interest rates to really high rates and then bring them down,” she said. “I think of raising them to a level that we think is going to be appropriate and then holding them there.”

In an FT interview, San Francisco Fed President Mary Daly said , “there’s good news on the month-to-month data that consumers and business are getting some relief, but inflation remains far too high and not near our price stability goal,”

“This is why we don’t want to declare victory on inflation coming down,” she said. “We’re not near done yet.”

She reiterated her view that rise should rise to just under 3.5% by the end of the year. And her baseline for September FOMC meeting is a 50bps hike.

“There is a lot of uncertainty, so leaping ahead with great confidence that [a 0.75 percentage point rate rise] is what we need and being prescriptive would not be optimal policy,” she said.

Minneapolis Fed President Neel Kashkari said yesterday that in the June economic projections, he recommended interest rate at 3.9% by the end of this year, and 4.4% next. He added, “I haven’t seen anything that changes that.”

Even after yesterday’s July CPI release, the Fed is “far away from declaring victory” on inflation, Kashkari said. “This is just the first hint that maybe inflation is starting to move in the right direction, but it doesn’t change my path.”

“I think a much more likely scenario is we will raise rates to some point and then we will sit there until we get convinced that inflation is well on its way back down to 2% before I would think about easing back on interest rates,” he said.

Chicago Fed President Charles Evans said today’s CPI data was the first “positive” reading since Fed started tightening. Yet, inflation is still “unacceptably” high”. He expects Fed to continue to raise interest rate to 3.25-3.50% by year end, and to 3.75-4.00 by the end of next year.

Evans was optimistic that the economy will “continue to grow” in H2. “”I’m not looking for the economy to turn down in a significant fashion any time soon,” he added. He expected growth to be 1.5-2.0% next year.