San Francisco Fed Pres. Mary Davy speaking
- Federal Reserve needs to be prepared to do more to support economy if needed
- Keeping current a highly accommodative policy until economy has largely recovered what's been lost
- With inflation low, Fed can seek upside potential of the full employment goal
- Fiscal policy makers must commit to sustained investment in an economic future
- Much more will be needed than trillions already spent on emergency economic relief
- Low interest rates mean public spending is relatively cheap, easy to finance
- Pay off from public spending potentially huge
- Calls for public investments in health infrastructure access, care
- Calls for more public investment in education, digital infrastructure
Comments are in line with the Fed's decision last week and once again calls on fiscal policy makers to continue stimulation.
