Fed’s Daly: Shock is planning downward pressure on inflation
|San Francisco Federal Reserve Bank President Mary Daly states that the demand shock is planning downward pressure on inflation.
Key comments
- Daly says current employment levels could be commensurate with overall reduced demand in the US economy.
- Says the labor market is in better shape than it might be, but nowhere close to where it needs to be.
- Says the impact of coronavirus vastly different depending on what industry you are in, tech a net beneficiary.
- SaysUncertainty to how much more damage the US economy will suffer.
- If there is no more fiscal stimulus it could have a spiralling effect on ability for businesses and households to pay bills and repay debt.
- Worried about commercial real estate sector.
Market reaction
There was no surprises in the comments here and the US dollar remains in recovery mode, higher by some 0.18% in thee DXY at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.