San Francisco Federal Reserve Bank President Mary Daly on Tuesday said inflation is causing pain in the economy for many Americans and is a corrosive disease.
Her comments follow the drop in US JOLTS today that sent the US dollar off a cliff to 110.11.
JOLTS Job Openings is a survey done by the US Bureau of Labor Statistics to help measure job vacancies. It collects data from employers including retailers, manufacturers and different offices each month:
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Earlier, Daly explained that the US central bank needs to push borrowing costs higher and then hold those restrictive policies in place until "we are truly done" on getting inflation back down to the Fed's 2% target.
Key comments
''Rising inflation is corrosive, weighs on disadvantaged.
Inclusive economy means jobs and price stability.
Inflation is not a risk, it is a reality.
Seeing job market vacancies fall, pace of hiring should slow.
We are working toward balancing both side of Fed mandate.
Fortunate economy was so strong ahead of pandemic.
Financial conditions have responded swiftly to changes in Fed outlook.
Always room for fed to do things better.
Did not fully appreciate how long it would take to deal with covid pandemic.
Also didnt appreciate how strong demand was going to be.
Didn't appreciate strength of demand amid pandemic period.
Fed has tools and knowledge to fight high inflation.
We have the tools to fight high inflation, we know how to do that.
Good to see relative stability of long term inflation expectations.
We can't be complacent but so far have not lost inflation anchor.''
US dollar update
Meanwhile, the US dollar slid against major currencies on Tuesday as the yield on the benchmark US 10-year Treasury fell to 3.564% as a new low for the week so far. DXY dropped from a high of 111.886 for the day, or 110.870 on the JOLTS data.
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