Fed’s Daly: Shock is planning downward pressure on inflation

Ross J Burland FXStreet

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.

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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