The Financial Times (FT) quotes Mary Daly, the president of the Federal Reserve Bank of San Francisco, as citing the risk to the US economy as well as the global recovery amid the coronavirus (COVID-19) troubles.
The spread of the Delta coronavirus strain and poor vaccination rates in some regions of the world, according to a top Federal Reserve official, constitute a threat to global recovery, and she advocated caution in reducing monetary assistance for the US economy.
One of the biggest hazards to our worldwide expansion in the future, in my opinion, is declaring victory on Covid too soon.
If the global economy can’t get higher immunization rates, really get Covid behind [us], that’s a headwind for US growth.
Good vaccination percentages are fantastic, but consider all the areas where this isn’t yet happening.
What you’ve witnessed is a growing awareness of the global economy’s negative risk.
In his news conference, Chair [Jay] Powell stated this very clearly, and I believe that is the path to take here.
That’s the message I’m trying to get across: we’re completely dedicated to our framework. That involves eliminating job shortages and achieving 2% average inflation, which is still critical.
Following the FT report, the EUR/USD fell to 1.1835, down 0.08 percent intraday, reversing the previous day’s three-month low recovery.
Read more: Coronavirus Update: South Korea Sets New Highs in Infections, NSW Suggests Week-Long Lockdown/n
