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San Francisco Federal Reserve President Mary Daly told Reuters on Tuesday that she sees a moderate and gradual recovery in the US economy going forward.

Additional takeaways

“Surge in COVID-19 cases creates uncertainty, could slow pace of growth.”

“Lack of resolution on political process adds to pervasive uncertainty.”

“Vaccine news is heartening but the economy is being dictated by the virus, which is surging.”

“Some sectors like restaurants, tourism, need more support.”

“Will need more unemployment insurance, more Paycheck Protection Program (PPP) or a similar program.”

“Fed policies now are giving people a bridge, exact same policies will be stimulative when the pandemic is past.”

“Fed is prepared to do whatever it takes to support the economy.”

“Confident that Ted, Treasury will keep any or all 13-3 facilities that may still be needed.”

Market reaction

The US Dollar Index largely ignored these remarks and was last seen losing 0.1% on a daily basis at 92.74.