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The main disruption to the US economy will occur in the second quarter if the coronavirus situation is managed properly, St. Louis Federal Reserve Bank President James Bullard said on Tuesday.

Additional takeaways

“Fed has intervened effectively to maintain financial market functioning, stave off crisis on that front.”

“Pandemic crisis a stress test for euro and the European project.”

“Economy does not have a pause button, if closures extend too long new problems will develop.”

“Past pandemics have not necessarily led to a long period of economic decline, at times been followed by strong growth.”

“US cannot afford to stay on hold until there is a complete and total resolution of the virus such as a vaccine.”

Market reaction

The US Dollar Index largely ignored these remarks and was last seen adding 0.2% on the day at 99.70.