Fed's Daly: No reason to expect factors crimping labor supply to be permanent

In a blog post published on Tuesday, San Francisco Federal Reserve Bank President Mary Daly noted that she expects most of the people who lost their jobs during the coronavirus crisis to return to labor force as the economy recovers.

"Myriad factors are tempering labor supply at the moment - the need to care for children, fears of COVID, generous unemployment benefits," Daly said. "But there is no reason to expect those to be permanent or even highly persistent features of the labor market."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen gaining 0.05% on a daily basis at 92.12.