San Francisco Federal Reserve Bank President Mary Daly spoke on Saturday.
Daly said low inflation gives the FOMC space to keep interest rates low
Which should result in higher employment
- "We can keep the policy rate accommodative and we can both find full employment experientially, by waiting for it to show up in wage and price inflation, and we can treat the problem of muted inflation pressures and get ourselves back up to target."
- low rates appear to be delivering some benefits - eg. improving hiring prospects
And, looks like she remains committed to keeping rates down:
- "I remain surprised that wage growth hasn't picked up more"
- "If we haven't seen it (low unemployment) push up wage growth more than it has, I don't think we've achieved full employment."