Fed’s Daly Play Down Risk of Rising Inflation

The President of the Federal Reserve Bank of San Francisco, Mary Daly, on Tuesday, played down the risks of a rise in inflation in the United States.

Daly noted that there are concerns in the market of a surge in the inflation rate, but said that she does not this unwanted inflation is around the corner.

“I am not thinking that we have unwanted inflation around the corner.”

“I don’t think that is a risk we should think about right now.”

In the case inflation suddenly rose, the U.S. Federal Reserve has many tools to maintain inflation at the 2% target, she further added, pointing to the higher risk of losing jobs as the economy struggles with the impacts of the Coronavirus pandemic.