Fed’s Daly: Pandemic pushing prices higher but impact should fade
In a weekend interview with CBS, San Francisco Federal Reserve President Mary Daly made some comments on the US labor market and rising price pressures, per Bloomberg.
Key quotes
“It’s too soon to say it’s stalling, but certainly we’re seeing the pain of Covid, and the pain of the delta variant,”
“Covid is not behind us, so I don’t expect the job market to just be continuous. It is going to have these ups and downs.”
“Delta has taken a toll. But it hasn’t yet derailed us.”
“I don’t have a different view than I had on it when we first started. It’s going to be hard and as goes Covid, so goes the economy.”
Americans are feeling the strain of higher prices for “energy, food, basic services.”
“This is really hard. And it’s also really directly related to Covid. It’s related to the supply bottlenecks, to the disruptions. But I don’t see this as a long-term phenomenon.”
Market reaction
The US dollar index is looking to find its feet after the NFP disappointment, as the Fed’s tapering expectations remain intact, keeping the Treasury yields elevated.
The US dollar index was last seen changing hands at 94.10, up 0.05% on the day.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
