Fed leader advocates for liquidity reduction in late 2021 or early 2022

Fed
Federal Reserve Building in Washington, USA (March 19, 2019)
Photo: Leah Mills/Reuters

leader of Federal Reserve (Fed) From San Francisco, Mary Daly said on Friday (2) she is optimistic about the outlook for the economy in the United States, indicating that vaccination against COVID-19 has progressed faster than she expected.

“I am not surprised that with the good news and economic momentum, monetary policy has to adjust,” she said.

in an interview with The Associated Press, Daly considered that at the end of 2021 or early next year, it would be appropriate to consider the start of “taping” as a process to phase out property purchases.

“I really see the economy being able to start operating more and more on its own, which means we can take away some of our housing,” he indicated in the interview.

However, the official felt that more progress needed to be made towards inflation and employment targets.

“We are far from full employment, and monetary policy needs to remain accommodating until then,” Daly said.

According to the official, “we are going to see how stable the economic impulse to adjust monetary policy will remain and the risks to the economy”.

She also said that inflation “appears to be falling after a temporary spike.”

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About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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