MNI BRIEF: Fed's Daly- Hiring Trend Helping Prevent Scarring

San Francisco Fed President Mary Daly said Wednesday the U.S. economy has avoided major scarring through a pandemic that has still left millions out of work, while it may take another year or two before the central bank's inflation goals are within reach.

"Right now, I don't see that we have permanent damage, what I see is employers are opening up their stores, and saying please come and work, I see hiring signs all over the place," she said during a web presentation.

Swift actions by Congress and the Fed helped people get the support they need, though "our work is not done" and a period of strong growth is needed to pull in the more than 8 million displaced employees, she said.

Inflation will soon see a temporary burst that should be overlooked, she said. "My own forecast is it will take another year or two to get back up to our 2% target, to get to 2% on a sustained basis, and then to moderately overshoot that for some time." Other Fed officials have also told MNI talk of runaway inflation is premature.