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).