Fed's Daly: Prices will moderate as we get through the pandemic
|San Francisco Federal Reserve Bank President Mary Daly was speaking at the National Association of Business Economists virtual meeting.
She said it is too early to know how far the US economy is from full employment, adding that there won’t be better clarity until the middle of next year.
“It’s going to take time to know,” Daly explained. With the great amount of uncertainty around the state of the labour market, the best thing to do for now is to stay “steady in the boat” and vigilant, she said.
Key comments
My modal outlook is that prices will moderate as we get through the pandemic.
I also have to worry about the non-modal outlook; watching carefully to see if inflation expectations rise.
Market implications
traders are waiting for the US Consumer Price Index and hence the US dollar is consolidating, rather than reacting to each comment from central bankers on Tuesday.
The dollar was oscillating between 93.90 and 94.10 in the morning trade of New York after data showed US producer prices increased solidly in October. While this was indicating that high inflation could persist for a while amid tight supply chains related to the pandemic, there were no great shakes ahead of tomorrow's key event in CPI.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.