Fed’s Daly: Currently expect fed funds rate to top out around 5%

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FILE PHOTO: San Francisco Federal Reserve Bank President Mary Daly poses in San Francisco

NEW YORK (Reuters) – Federal Reserve Bank of San Francisco leader Mary Daly said on Monday she is still expecting the U.S. central bank to hike rates more and will likely lift its interest rate target to around 5%.

While the end state of the central bank’s rate rise campaign is “not set in stone” it remains likely the Fed will get to around 5%, or somewhere between 4.75% and 5.25%, Daly said in an address to the Orange County Business Council in California.

The current federal funds rate stands at between 3.75% and 4%. The rate setting Federal Open Market Committee is almost certain to raise that rate when it meets next month.

(Reporting by Michael S. Derby; Editing by Chris Reese)

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