Fed’s Daly: High inflation readings to my mind don't suggest fed needs to change course

San Francisco Federal Reserve Bank President Mary Daly talked on the PBS Newshour late Wednesday where she crossed paths with Fed Vice Chair Richard Clarida who earlier signalled tapering and rate hike concerns.

Key quotes

Low interest rates support a myriad of activities in the economy.

We are not fully beyond Covid, people still dealing with disruption from the pandemic.

If we can get Covid full behind us we get fully back to the economy we miss.

Looking for continued progress in labor market, rising vaccination rates before would taper

Supply will respond and inflation won’t stay high.

Expects a temporary spike in inflation that could last until next year.

Rise in house prices is demand-supply issue that will resolve as more supply comes on.

Market reaction

Following the comments, S&P 500 Futures print 0.07% intraday gains despite a downbeat closing on Wall Street.

Read: Wall Street Close: Trades mixed amid diverse data, taper talks and firmer earnings