Daly of Faith says low vaccination rates are a risk to the global economy

(Reuters) -Low embedding rates in some regions of the world are a threat to U.S. and global growth, Mary Daly told the Federal Reserve Financial Times to https://on.ft.com/3e22TgK, a central bank fully committed to eliminating employment shortages.

Daly, president of the Federal Reserve Bank of San Francisco, said it was important for the rest of the world to achieve higher vaccination rates, and that the inability to achieve that would be a “headwind” of U.S. economic growth.

“I believe one of the biggest risks to our global growth in the future is to claim victory for COVID-19 in advance,” Daly said in an interview published Friday.

In a June policy statement released by the central bank on Wednesday, “several participants” believe that the conditions for reducing asset purchases would be met “earlier than anticipated”.

Others saw the not-so-clear signal of input data and warned that the reopening of the economy after a pandemic had left an unusual level of uncertainty that any “change” in policy change should be raised.

Daly told the FT that the central bank should see the consequences of the reduction before interest rates and policy normalization increase.

“We’re ready to reduce it at the right time.”

Daly said the Fed was fully committed to its scope. “This means eliminating job shortages and delivering an average inflation of 2%, which is still absolutely crucial,” he added.