Mary Daly is President of the Federal Reserve Bank of San Francisco
- says she does not see a pressing need to give further forward guidance on rate path
- new framework goes a long way to signal accommodative policy until inflation averages 2% and shortfalls on employment are offset
- right now long rates are aligned with fed policy expectations; would use more forward guidance if expectations became misaligned
- says she expects labor market to improve only in fits and starts until covid is behind us
- low take up on main street facility is not a sign of success; continuing to work with treasury to make it a better program
- setting sights on a moderate overshoot on inflation helps guide where rate path will be
- the time period over which to average inflation at 2% will depend on economic circumstances
- does not want to be constrained by a rule on average inflation targeting
more to come
