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Business contacts are telling that May is looming as a month where liquidity problems could evolve into solvency problems, Atlanta Fed President Raphael Bostic said on Wednesday.

“We are starting to see very positive developments in financial markets,” Bostic added. “The country now faces the issue of which places open soonest and which have key parts of the supply chain that may be delayed.”

Market reaction

These comments did little to nothing to improve the market sentiment. As of writing, the Dow Jones Industrial Average and the S&P 500 were both down around 2.1% while the Nasdaq Composite was erasing 1.2%.