Fed's Daly says US economy is not out of the woods, needs more fiscal support

Ross J Burland FXStreet

In a CNBC interview, theSan Francisco Federal Reserve President Mary said the US economy is not out of the woods, needs more fiscal support to help heal the economy even as Senate Majority Leader Mitch McConnell said Republicans and Democrats were still "very very far apart" on how much to spend.

"We need fiscal agents to offer fiscal support to the parts of the economy that have yet to recover, to the millions of Americans who are still sidelined and wondering how they are going to pay their bills," San Francisco Federal Reserve President Mary Daly told CNBC on Wednesday.

"Whether it happens next week or next month is important to those American households, but also really important to shoring up the economy so that we can fully reengage and get the coronavirus behind us."

Daly added that the unemployment rate is an 'overused' measure, in a very 'big ditch' on the labour market.

Daly also said that epidemiologists tell her to expect a vaccine or therapeutics by middle of 2021 and that is being factored into her forecast.

Market implications

These comments only go to embolden the bear's case for further downside on Wall Street into the final hour of trade.

The S&P 500 has U-turned on the session, in choppy price action between 3392 and 3340 the low.

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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