6/28, 6:53 PM (Source: TeleTrader)
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Price stability critical to ensure employment - Fed's Daly

San Francisco Federal Reserve Bank President Mary Daly stated on Tuesday that maintaining price stability is critical to ensuring "full employment," adding that the labor market is currently operating at a "solid level" in the country.

Speaking on the issue of inflation in an interview on LinkedIn, Daly stressed that the Federal Reserve's monetary policy is focused on establishing full employment for the citizens and hiking interest rates to tackle the rising prices in the country. She explained that the ongoing effects of the global pandemic, along with the Ukrainian crisis, have resulted in a slightly higher rate of unemployment "like in a recession," adding the economic slowdown is creating a "headwind" for the US economy.

Daly emphasized that inflation has a "pervasive" effect on consumer and small business sentiment, warning that inflation is a "serious threat" to the economy, and stressing that the Federal Reserve must intervene to combat its effects.

Baha Breaking News (BBN) / AB