(Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Thursday said the U.S. economy is “closing in” on the U.S. central bank’s two goals of full employment and 2% inflation, at least in the short run.
“There’s a difference in the short run and the long run…balancing those things as we move forward in 2022 will be the critical point of business for monetary policy,” Daly said at an Irish central bank virtual event. While the labor market “looks like it’s very strong,” she said, the economy is supporting millions of jobs fewer than it did pre-pandemic as women and older workers stay out of the labor force due to COVID constraints.
(This story corrects sponsor of virtual event to Irish central bank)
(Reporting by Ann Saphir)