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


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. 

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