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“100% salary replacement for unemployment insurance is not appropriate as economy reopens,” St. Louis Federal Reserve President James Bullard said on Wednesday. Bullard further suggested incentives for workers to go back to work.

Additional takeaways

“Balance sheet is not a good metric for judging inflation risk, Fed programs will be wound down after the crisis.”

“Macroeconomics around government debt has not worked, needs to be rethought.”

“Waiting for vaccine instead of risk mitigation in a reopened economy would increase the risk of depression, financial crisis.”

Market reaction

These comments had little to no impact on the USD’s performance. As of writing, the US Dollar Index was up 0.12% on the day at 99.12.