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“There is still a need for fiscal support and there are too many communities out there where recovery is going to take a long time,” Atlanta Fed President Raphael Bostic said on Thursday.

Additional takeaways

“Sizeable number of businesses now viewing crisis over one or two-year horizons, versus a couple of months at the start of the crisis.”

“Fed learned sensitivity of inflation relative to employment was lower 2012-2018 than it had been in previous decades.”

“Fed is going to be willing to be more stimulative than it has been.”

“My approach is going to be to be far more patient in how policy moves from accommodative to neutral and beyond.”

“As long as inflation is not running too far above the Fed’s target he is comfortable waiting and letting the economy run.”

“Natural rate of inflation is at about 2% or a little above.”

“Forward guidance will become more important as it becomes clear that the economy is moving out of the emergency phase and into recovery.”

“Recovery is happening in an uneven way, hitting some sectors and low-wage workers much harder than others.”

“There are parts of the economy are still struggling and it would be a mistake for the Fed to remove that support.”

“Fed is trying to do the best it can to support those who don’t have a position in the stock market.”

“Fed should be concerned about whether its policies are exacerbating inequality and starting to think about various ways to impact communities.”

“Fed policy alone will not be enough to address long-standing trends in inequality.”

“The Fed didn’t ignore the employment side of the mandate but the understanding of the relationship between inflation and employment shifted.”

“Comfortable with inflation going above 2% but is more concerned with the trajectory.”

“Certainly we have to be concerned about debt and ability to repay it government didn’t get crisis handled we would be in a worse situation.”

Market reaction

The US Dollar Index continues to fluctuate below 93.00 following these comments and was last seen gaining 0.2% on the day at 92.84.

Expert score

5

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