Jan 9 (Reuters) - San Francisco Federal Reserve Bank President Mary Daly on Monday said that another half-point interest-rate hike, or a smaller quarter-point rate hike, are both possibilities for the Fed's next meeting Jan. 31- Feb.1

"I can give you arguments for either side," Daly said in a webcast interview with the Wall Street Journal. The Fed should try to bring inflation down "as gently as we can," but also "absolutely" needs to make sure high inflation does not become embedded. (Reporting by Ann Saphir; Editing by Chizu Nomiyama)