Fed’s Daly: Easy Policy Must be Maintained

The President of the Federal Reserve Bank of San Francisco, Mary Daly, said on Tuesday that the United States Federal Reserve needs to maintain its monetary easing policy during the economic recovery from the Coronavirus crisis to achieve its targets, Reuters reported.

“Hitting or exceeding 2% inflation for a few months does not mean victory.”

“To fully achieve the goal of price stability, we need to see a sustained period of moderately above-target inflation. Only then will the job be complete.”

“A full and true recovery from COVID-19 will most likely be protracted. And it will be tempting, as time passes, to think that monetary policy has done all that it can.”

“Even when progress is gradual the central bank can, with commitment, bring inflation sustainably to target.”