San Francisco Federal Reserve President Mary Daly on Wednesday urged more government investment in roads, bridges, digital infrastructure, education, climate resiliency and other productivity-boosting infrastructure to help pull the economy from the deep recession brought on by the coronavirus pandemic, Reuters reported.
The role for fiscal policymakers “has never been stronger than it is right now, in my lifetime,
Daly said at an online event run by the Harvard Kennedy School’s Institute of Politics.
We have to build a bridge to help shore people up so that when we emerge from the crisis, we are well prepared to continue to grow.
- Fed’s Daly says in her lifetime, the role for fiscal policymakers has never been stronger.
- Fed’s Daly says all spending is not equal; fiscal agents should invest to build productivity, education, climate resiliency, opportunity.
- Fed’s Daly says Fed’s balance sheet policy has not been destabilizing for emerging markets.
Market implications
The markets are concerned for one thing and that is how long it will take for inflation to get to 2% and beyond before the Fed is seeking to raises rates.
The US dollar, for that reason, is under pressure for markets believe it will take years before the Fed will hike rates.
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