The upcoming FOMC meeting is the right time to review the impact of the Fed programs so far, St. Louis Federal Reserve Bank President James Bullard said on Friday.
Additional takeaways
“Not expecting much on forward guidance at upcoming meeting; story right now is not about rates but about the virus.”
“Moral hazard would be a concern in normal times, but not during a pandemic.”
“The Fed’s aim is that if a company was in good standing in January, it will be able to be operating in the second half of the year.”
“One thing the Fed could do in next statement is emphasize that data right now is not meaningful.”
“No reason US cannot get past crisis mostly in Q2 and have a good economy in the second half.”
“Measures of liquidity in many markets are better now than a few weeks ago.”
“Unlikely the Fed would move to purchase equities, not sure it would have much impact anyway given size and liquidity of US market.”
“There is some deflation risk, but hard to know how to read inflation data given how many stores are closed.”
“The Fed still committed to 2% inflation target but those are debates for the future.”
“The Fed should be careful about next steps, reserve some firepower for clearly identified problems.”
“Federal government should simply foot production costs of any company able to make and sell tests.”
“Universal testing not just a health issue, also key for businesses, individuals and economic reopening.”
“Government support of production costs while allowing firms to sell them at a market price, would leave the country swimming in tests by second half of year.”
Market reaction
The US Dollar Index largely ignored these remarks and was last seen down 0.23% on the day at 99.70.
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