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The coronavirus resurgence is dampening the pace of the US economic momentum and the path of the economy depends critically on the path of the virus, Richmond Fed President Thomas Barkin said on Monday.

Key quotes

“If virus resurgence continues it could be a significant headwind on confidence.”

“Escalation of the virus may be making an economic pothole into a sinkhole and so economy requires more fiscal support.”

“Pulling away fiscal support would be a pretty traumatic move for the US economy.”

Market reaction

The US Dollar Index largely ignored these remarks and was last seen gaining 0.16% on the day at 93.61.