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The United States is still in an economic downturn of historic proportions, Richmond Fed President Thomas Barkin said on Tuesday. “Low interest rates may be encouraging demand for stocks,” Barkin added. 

Market reaction

These comments don’t seem to be having a significant impact on market sentiment. As of writing, the S&P 500 and the Dow Jones Industrial Average were up between 0.5% and 1.05%, respectively. On the other hand, the US Dollar Index, which tracks the greenback’s performance against a basket of six major currencies, is down 0.13% on the day at 93.50.