Fed’s Daly: Prices will moderate as U. S. gets through pandemic

San Francisco Fed President Mary Daly was speaking at the National Association of Business Economists virtual meeting.

Daly 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 added.
Key comments

Daly believes that prices will moderate as the U. S. gets through the pandemic. She also worries about the non-modal outlook; watching carefully to see if inflation expectations rise.

Traders are waiting for the US Consumer Price Index and hence the USD is consolidating, rather than reacting to each comment from central bankers on Tuesday.