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Bold Action Necessary to Recover from Coronavirus’ Economic Toll, Says Federal Reserve Bank of San Francisco President

Elijah Labby

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Photo of Federal Reserve Bank of San Francisco President Mary Daly courtesy the Commonwealth Club

June 16, 2020 — Mary Daly, president of the Federal Reserve Bank of San Francisco, said in a National Press Club live event on Monday that “bold action” was the only way to recover from the coronavirus’s economic impact.

Daly said that the passage of the CARES Act was an excellent step toward a hastened recovery. She also said that the Federal Reserve’s rate cuts played a crucial role in laying the groundwork for a return to normalcy.

“We... provided more direct lending to businesses and to state and local governments,” she said. “These actions have served to ease market pressures and ensure the smooth flow of funding and credit.”

However, she said that such actions would have to be sustained and consistent if employed in the future.

“One of the key lessons from history isn’t speed of action alone — it’s commitment to action,” she pointed out. “Whatever it takes over the long term is essential to ensuring a sustainable recovery.”

Daly urged policymakers to continue providing stimuli, adding that the Federal Reserve is not the only agency responsible for dealing with the nation’s monetary issues.

“We also need fiscal policymakers to commit to sustained investments in our economic future,” she said. “The need for this was evident before the crisis, and it's even more evident [now].”

Daly also said that inclusivity in the allocation of funds was crucial, noting that lack of healthcare access as well as various structural barriers make it difficult for disadvantaged Americans to get ahead. The coronavirus offers a unique chance to fight this, she claimed.

“Inclusive growth is faster growth, and it will pay for itself in the long run,” she said.

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