San Francisco Federal Reserve President Mary Daly supported September’s interest-rate hike but said additional increases depend on whether inflation shocks fade or intensify. She identified tariffs, oil prices linked to the Middle East conflict and rising AI-related chip demand as potential drivers. Daly said temporary shocks may not require further action, while prolonged or compounding shocks—including another round of tariffs—could extend inflation. She does not vote on rate-setting this year but participates in the Federal Reserve’s regular policy debates in Washington.