Fed's Daly: Low interest rates mean public spending is relatively cheap, easy to finance

The Federal Reserve needs to be prepared to do more to support the economy if needed, San Francisco Federal Reserve President Mary Daly said on Monday.

Additional takeaways

"Fed keeping current highly accommodative policy until the economy has largely recovered what's been lost."

"With inflation low, the Fed can seek the upside potential of full-employment goal."

"Fiscal policymakers must commit to sustained investments in the 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."

"Payoff from public spending is potentially huge."

Market reaction

The US Dollar Index paid little to no mid to these remarks and was last seen losing 0.2% on the day at 96.90.