Fed’s Daly: “We can keep the policy rate accommodative”
San Francisco Fed President Mary Daly crossed the wires on Saturday, via Reuters, and said that low inflation gives the FOMC space to keep interest rates low, which should result in higher employment.
Her dovish comments come ahead of this Wednesday FOMC minutes.
Additional Quotes:
"We can keep the policy rate accommodative and we can both find full employment experientially, by waiting for it to show up in wage and price inflation, and we can treat the problem of muted inflation pressures and get ourselves back up to target."
“Low rates appear to be delivering some benefits - eg. improving hiring prospects.”
"I remain surprised that wage growth hasn't picked up more."
"If we haven't seen it (low unemployment) push up wage growth more than it has, I don't think we've achieved full employment."
Meanwhile, the US dollar index, the greenback when measured against a basket of six major currencies, extends declines into a third straight day on Monday amid a lack of trade uncertainty and dovish Fed expectations. The USD index trades -0.06% lower at one-week lows of 97.94, at the time of writing.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
