SF Fed's Mary Daly is a nonvoting member on the Federal Reserve Board. She is speaking in a virtual economic forum
Fed's Daly - speaking in a virtual economic forum - is saying:
- she would be hesitant to call recent positive signs a recovery
- she sees no V-shaped recovery
- sees US unemployment staying above 10% through at the end of the year under her best case scenario
- if we can get virus under control, the recovery can take just 4 or 5 years
- virus path to dictate pace at which unemployment declines
- sees unemployment staying elevated even as workers returning
- we are in a really uncertain place right now
- consumer demand remains much weaker than pre-pandemic
- As Fed shores of financial markets, needs also to be mindful of possible excesses
Comments are less positive than the market is expecting. A 4-5 year recovery is certainly not what the market expects or wants (nor the Trump administration into the November election).