Staff of Reuters 2 minutes ReadFILE PHOTO: Mary Daly, President of the San Francisco Federal Reserve Bank, poses at the bank’s headquarters in San Francisco, California, on July 16, 2019. (Reuters) – REUTERS/Ann Saphir/File Photo The Federal Reserve’s Mary Daly told the Financial Times on.ft.com/3e22TgK that low immunization rates in some parts of the world constitute a threat to the United States and global growth, adding that the central bank was completely dedicated to eradicating job shortages. President of the Federal Reserve Bank of San Francisco, John Daly, said it was critical for the rest of the world to attain greater immunization rates, and that failure to do so would be a “headwind” for US economic growth. “I believe that prematurely declaring victory on COVID-19 is one of the biggest dangers to our global growth moving forward,” Daly said in an interview published on Friday. “Various participants” felt requirements for lowering asset purchases would be “met rather earlier than they had anticipated,” according to the minutes of the central bank’s June policy meeting, which were released on Wednesday. Others, however, saw a less obvious signal in the data, warning that reopening the economy after a pandemic created an exceptional level of uncertainty, necessitating a “patient” approach to any policy shift. Before moving on to raising interest rates and policy normalization, Daly told the Financial Times that the central bank would need to see the consequences of tapering. “We’re prepared to taper when the time comes.” The Fed, according to Daly, is totally committed to its framework. “That means removing job shortages and achieving 2% average inflation, which is still critical,” she continued. Shubham Kalia contributed reporting, and Uttaresh.V. edited the piece./n
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