Fed’s Daly: We are not through the pandemic, we are getting through the pandemic – FT

Amid the coronavirus (COVID-19) woes, the Financial Times (FT) quote Mary Daly, the president of the Federal Reserve Bank of San Francisco to cite the risk to the US economy, as well as the global recovery.

Key quotes…

A top Federal Reserve official has warned the spread of the Delta coronavirus variant and low vaccination rates in some parts of the world pose a threat to the global recovery as she urged caution in removing monetary support for the US economy.

I think one of the biggest risks to our global growth going forward is that we prematurely declare victory on Covid.

If the global economy . . . can’t get . . . higher rates of vaccination, really get Covid behind [us], then that’s a headwind on US growth

Good numbers on the vaccinations are terrific, but look at all the pockets where that isn’t yet happening.

What you’ve seen is an increasing sense of the downside risk to the global economy.

Chair [Jay] Powell said this so clearly in his press conference and I think that’s the light to follow here.

That’s the message I keep saying: we’re fully committed to our framework. That means eliminating shortfalls in employment and delivering average inflation of 2 percent, and that is still absolutely paramount.

EUR/USD remains pressured…

Following the FT news, the EUR/USD prices drop back to 1.1835, down 0.08% intraday, while fading the previous day’s bounce off a three-month low.

Read: Coronavirus Update: South Korea marks record infections, NSW hints another week-long lockdown