[Fed's Daly: Inflation Continues to Worsen, Further Rate Hikes Likely Necessary] According to Jinshi Data on November 14th, San Francisco Federal Reserve President Mary Daly stated on Friday that given the deteriorating inflation situation, the Federal Reserve may need to raise interest rates further. She pointed out that core CPI has risen for three consecutive months by about 0.3% month-on-month, higher than the 0.2% or lower level consistent with the Fed's 2% inflation target. She is particularly concerned about the poor performance of the service sector, excluding housing, as these prices are typically more sticky. Business input costs are rising, and more and more producers are saying that profit margins are no longer sufficient to absorb cost pressures and are considering passing those costs on to consumers. Daly stated that she will discuss rate hikes with her colleagues at the December meeting and future meetings, and make a collective decision based on economic conditions. The Fed raised rates in September and kept them unchanged in October. The market currently expects a 25 basis point rate hike at the December 8-9 and January 26-27 meetings. Daly also stated that the focus in the next one to three months will be on monitoring consumer spending, especially whether consumers will reduce spending during the holiday season due to rising prices. She stated that consumption is currently showing strong resilience, but some regions have begun to show signs that consumers may gradually lose their spending power.