Covid pushing prices up, but impact to fade: Fed's Daly
Data out on Friday showed a US nonfarm payrolls increased by a much lower than expected 194,000 in September, the smallest advance this year. That caused some to worry about the harm done to the labour market by the coronavirus delta variant.
By Bloomberg | Updated:
Agencies
Dislocations created by the coronavirus pandemic have pushed prices higher, but these pressures should fade over time, said San Francisco Federal Reserve President Mary Daly.
"Everyone is feeling the rising prices," Daly told CBS's "Face the Nation" on Sunday, adding that they were directly related to supple bottlenecks and disruptions caused by Covid-19. "I don't see this as a long-term phenomenon," she said.
US inflation is rising at the fastest pace since 1991, but Fed officials expect some of the drivers of that increase to abate over time, and expect to keep interest rates near zero to help the labor market heal.
Data out on Friday showed a US nonfarm payrolls increased by a much lower than expected 194,000 in September, the smallest advance this year. That caused some to worry about the harm done to the labour market by the coronavirus delta variant.
Daly, a voter this year on the rate-setting Federal Open Market Committee and one of the US central bank's more dovish policy makers, said it was premature to conclude the economy was faltering.
"Delta has taken a toll. But it hasn't yet derailed us."
"Everyone is feeling the rising prices," Daly told CBS's "Face the Nation" on Sunday, adding that they were directly related to supple bottlenecks and disruptions caused by Covid-19. "I don't see this as a long-term phenomenon," she said.
US inflation is rising at the fastest pace since 1991, but Fed officials expect some of the drivers of that increase to abate over time, and expect to keep interest rates near zero to help the labor market heal.
Data out on Friday showed a US nonfarm payrolls increased by a much lower than expected 194,000 in September, the smallest advance this year. That caused some to worry about the harm done to the labour market by the coronavirus delta variant.
Daly, a voter this year on the rate-setting Federal Open Market Committee and one of the US central bank's more dovish policy makers, said it was premature to conclude the economy was faltering.
"Delta has taken a toll. But it hasn't yet derailed us."
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