Mary Daly, who acts as the current president and chief executive officer of the Federal Reserve Bank of San Francisco, believes that the Fed has all the necessary tools to reduce inflation but expects inflation to continue and end the year marginally above 3%. Daly hinted at the possibility of further interest rate hikes after she was quoted as saying:

Looking ahead, there are good reasons to think that policy may have to tighten more to bring inflation down.

This comes after the U.S. Bureau of Labor Statistics released its much-anticipated CPI data for the month of March which puts the current inflation at 5%.