“The Federal Reserve is ready to respond with the full range of policy tools until COVID-19 is behind us,” San Francisco Federal Reserve President Mary Daly said on Tuesday, as reported by Reuters.
Additional takeaways
“Public health trajectory is very worrisome.”
“Will take ongoing monetary policy support to achieve Fed’s goals.”
“Hitting or exceeding 2% inflation goal for a few months does not mean victory.”
“We need sustained, moderately above-target inflation.”
“Full, true recovery will most likely be protracted.”
“Low rates raise financial system risks, best addressed by micro and macroprudential tools.”
“Fed will need to build tools to further mitigate financial system risk in the coming years.”
“Fed also needs further work on climate risk to the financial system, the broader economy.”
Market reaction
The US Dollar Index showed no immediate reaction to these remarks and was last seen losing 0.63% on the day at 91.30.