Federal Reserve Bank of San Francisco President Mary Daly said on Friday that the best way to create sustainable recovery is not to accommodate as much, according to Reuters. 

Additional Takeaways:

“We are nearing the level of maximum employment that’s achievable today.”

“The job of the Fed is to balance its employment, inflation goals.”

“We are not behind the curve on inflation.”

“Policy is in a good place.”

“The Fed will have optionality to raise rates faster or slower than current fed policymaker forecast.”

“We are in a balancing act.”

“Raising rates doesn’t mean we are declaring victory on full employment… We still expect more workers to come back to labor force.”

“The timing of rate hike will depend on course of covid, fiscal stimulus, and labor supply.”

“Low long-term yields suggest market believes high inflation won’t persist.”

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