Fed’s Daly: Our tools are starting to work in markets

Mary C. Daly, President and Chief Executive Officer of the Federal Reserve Bank of San Francisco, recently crossed wires while showing a sign of relief that the Fed’s tools to tamp the markets are starting to work. She also showed readiness to undertake more measures if needed.

Key quotes

It’s encouraging to see that there's more borrowing at the discount window, and that some market volatility has settled down.

Our tools are starting to work in market.

Continues to monitor that and see if more needs to be done.

Doing outreach to banks, lawmakers, local leaders and others to help figure out how to give relief to small businesses, households.

It's absolutely appropriate for Fed to work with fiscal agents to think about how to give relief to households, businesses.

If we do the right thing in terms of public health, and offset short-term economic disruptions, that will mitigate longer-term disruptions.

FX implications

Although the news failed to provide any major surprises, the US dollar remains on the latest recovery mode following the release.