San Francisco Fed President Mary Daly stated that her view on inflation persistence has undergone a fundamental shift, now believing that current inflation risks are "broadly skewed to the upside," and abandoning her previous "wait-and-see" approach to supply-side shocks. Cleveland Fed President Beth Hammack warned that if public inflation expectations significantly worsen, the Federal Reserve might need to take more aggressive rate hike actions, noting that current financial conditions are largely neutral and not feeling significantly restrictive. Both hawkish statements occurred after the release of the higher-than-expected US CPI data on Wednesday.