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Richmond Federal Reserve president, Thomas Barkin, says the current unprecedented fiscal, monetary stimulus has been critical in avoiding even worse economic outcomes.

Key comments

  • Says path of economy will depend on course of virus, and also fiscal support.
  • Says uncertainty is weighing on workforce participation.
  • Says uncertainty is also weighing on big and small businesses, which are slowing down to mitigate downside risks.
  • Says uncertainty also matters for banks, and should also matter for investors.
  • Says that to reduce uncertainty, need to control virus, deliver fiscal aid.
  • Says he has been struck in last two weeks by how many businesses are having trouble hiring workers.

Market implications

The comments play second fiddle to the release of the Federal Open Market Committee Minutes today which has sunk just about everything except for US yields and the US dollar. 

 

  • Gold Price Analysis: XAU/USD sinks on firmer US dollar tones and the FOMC