Fed’s Daly Says Low Vaccination Rates Are A Risk To The Global Economy
(Reuters) – Low vaccination rates in parts of the world pose a threat to the United States and global growth, Mary Daly of the Federal Reserve told the Financial Times https://on.ft.com/3e22TgK, adding that the central bank was fully committed to eliminating job shortages.
Daly, chairman of the Federal Reserve Bank of San Francisco, said it was important for the rest of the world to achieve higher immunization rates, and failure to do so would be a “headwind” for the rest of the world. American economic growth.
“I think one of the biggest risks to our global growth, going forward, is that we prematurely declare victory over COVID-19,” Daly said in the interview released Friday.
In the minutes of the June central bank policy meeting released on Wednesday, “various participants” estimated that the conditions for reducing asset purchases would be “fulfilled a little earlier than they had been. planned”.
Others saw a less clear signal in the incoming data and warned that reopening the economy after a pandemic left an unusual level of uncertainty that required a “patient” approach to any policy change.
Daly told FT the central bank would need to see the effects of the cut before moving on to raising interest rates and normalizing policies.
“We are ready to decrease at the appropriate time.”
Daly also said the Fed is fully committed to its framework. “This means eliminating job shortages and generating an average inflation of 2%, and that remains absolutely essential,” she added.
(Reporting by Shubham Kalia; editing by Uttaresh.V)