Fed’s Daly: Pressures on inflation are downward

Ross J Burland FXStreet

Federal Reserve's Mary Daly has stated that pressures on inflation are downward and that ‘too-high inflation’ isn’t a risk to think about at the moment.

Daly doesn’t see unwanted inflation ‘around the corner’.

San Francisco Fed President Mary Daly told a virtual discussion Tuesday, “we should be less fearful about inflation around the corner and recognize that fear costs millions of jobs.”

She is a voter on monetary policy this year, although markets are already pricing in the prospects that the Fed will hold interest rates near zero through at least 2023 to help the economy rebound.

Massive bond purchases are on the cards until it sees “substantial further progress” on employment and inflation, and thus the US dollar will struggle in such an environment.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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