The expansion of the Federal Reserve’s program to include some junk bonds is aimed at helping companies that were investment grade before the crisis, Federal Reserve Vice Chairman Richard Clarida told Bloomberg TV on Monday.
“The virus on net will be disinflationary,” Clarida added and noted that the Fed has tools to avoid a possible disinflation.
Additional takeaways
“Program so far is an ambitious and appropriate response to the crisis.”
“We are confident emergency measures can be scaled back at appropriate time.”
“The Fed is not doing yield curve control right now but will keep rates low until the economy is back on track.”
Market reaction
The US Dollar Index largely ignored these comments and was last up 0.07% on the day at 99.55.
Share
