FILE PHOTO: San Francisco Federal Reserve Bank chief of research Mary Daly stands near the podium before a speech at the CFA Society in San Francisco, California, U.S. July 10 2018. REUTERS/Ann Saphir/File Photo
(Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Thursday said the U.S. central bank will keep monetary policy easy despite what she said will be an increase this year in prices as the economy reopens more fully and households spend more.
“As policymakers we have to look through these temporary increases; we’re really looking for sustained improvements in inflation so we can average 2% and meet our price stability goals,” Daly said in an interview with Fox Business Network. “We still have almost 10 million people on the sidelines looking for jobs… we really aren’t projecting achieving either side of our dual mandate in 2021 and that’s why policy is remaining accommodative.”
Reporting by Ann Saphir; Editing by Chizu Nomiyama