Mary Daly is President and Chief Executive Officer of the Federal Reserve Bank of San Francisco. Speaking at the RBNZ / IMF conference in New Zealand.
- she is 'biased' toward running economy hot, given low inflation, uncertainty over 'full employment'
- says persistently undershooting Fed's 2% goal is worrisome
- 'make-up' strategy on meeting inflation goal could help counter inflation underruns
- 'hot' US labor market disproportionately benefits disadvantaged groups
- overly tight labor market could encourage decisions that could harm long-term economic growth
- corporate debt doesn't pose 'acute' financial stability risk, but watching closely
- says Fed may want to consider countercylical capital buffer if financial vulnerabilites increase