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President of the Federal Reserve Bank of San Francisco Mary Daly adds more comments, this time on stimulus talks as well, while extending her latest speech.

Key quotes

Lapse of extended unemployment benefits creates “a hole” in consumer demand and spending.

It wouldn’t surprise her if data in fall suggests parents leaving the labor force because of difficulties finding child care.

Forward guidance can make some of the Fed’s tools more effective by sending a clearer message to the public.

Congress will need to build a “bridge” now that dealing with coronavirus longer than had hoped.

FX implications

 The update exerts additional pressure on the US Senators to roll out the much-awaited aid-package, which in turn highlights updates concerning the same. As a result, the recent downbeat comments from US Treasury Secretary Steve Mnuchin probe the AUD/USD buyers around 0.7160.