Fed's Daly: If Fed gets to 1.25% by year's end, that quite a bit of tightening but still supporting economy

Federal Reserve Bank of San Francisco President Mary Daly on Monday noted that if the Federal Funds rate was to reach 1.25% by the end of the year, that would be quite a bit of tightening but still supportive of the economy. Presumably, she is talking about the possibility of five 25bps rate hikes in 2022 to take the Federal funds target range to 1.25-1.50% by the year's end. The fact that she (as one of the Fed's more dovish policymakers) points out that, even after five hikes, the level of interest rates would still be economically supportive could be seen as a nod of approval by Daly to market expectations for five hikes this year.