Fed's Daly: US labour market looks very strong, though pandemic holding back workers

Joel Frank Independent Analyst

Federal Reserve Bank of San Francisco President and FOMC member Mary Daly said on Thursday that the US labour market looks very strong, though the US remains millions of jobs short of pre-pandemic levels, with the pandemic still holding back workers.

Additional Remarks:

"Don't think monetary policy should accept today's labour market as what we want to see in the future."

"We are closing in on achieving our two goals in short-run."

"Balancing the short-run and longer-run goals in 2022 will be critical for Fed policy."

"Right now it is 'very appropriate' to taper asset purchases, so as to be out of it by the end of March."

"Normalizing the balance sheet would come after raising interest rates."

Market Reaction

The dollar does not seem to have reacted to Daly's latest remarks, which do not add any new information on top of Wednesday's minutes.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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