San Francisco Fed's Daly also speaking
San Francisco Fed president Mary Daly is also speaking. Daly is a voting member on the FOMC in 2021. As such she will have a vote with regard to increasing the taper at the next meeting. Headlines are starting to trickle in from her talk. Focus will be on her willingness to increase the taper/rate hike timetable.
- Thinks more older workers and women with children will be able to return to the labor market eventually
- Fed is facing a balancing act with dual mandates of price stability and maximum employment
- Long-run inflation expectations have been remarkably stable giving her confidence that people still believe the Fed is credible
- Fed's goals are in tension today and officials always need to plan for all scenarios
- Fed might need to taper asset purchases faster than anticipated
- Fed may need to start crafting a plan to think about raising interest rates
- She doesn't anticipate raising rates above the neutral rate of interest
- The Fed is more responsive to incoming data now than the Fed was during the inflation seen in the 1970s
