Fed’s Daly says low inflation presents opportunity

Fed’s Daly says low inflation presents opportunity

FILE PHOTO: San Francisco Federal Reserve Bank President Mary Daly poses at the bank’s headquarters in San Francisco, California, U.S., July 16, 2019. REUTERS/Ann Saphir.

BERKELEY, Calif. (Reuters) – Sluggish U.S. inflation means the Federal Reserve can keep borrowing costs where they are without much cost and with a lot of potential benefit for workers, San Francisco Federal Reserve Bank President Mary Daly said on Saturday.

“We’re lucky right now,” Daly said at University of California, Berkeley’s Clausen Center’s conference on global economic issues. “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.”

Reporting by Ann Saphir; Editing by Daniel Wallis

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