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High-frequency data showed some growth momentum slowed in July but the baseline view for a rebound in the third quarter remains unchanged, the Federal Reserve’s Vice Chairman Richard Clarida told CNBC on Wednesday.

Additional takeaways

“My personal forecast for the economy hasn’t changed because of the resurgence of the virus.”

“May and June were stronger than anticipated and another fiscal package is coming.”

“The longer this drags on the greater risk there is to long-term damage to the economy, we are not at that point yet.”

“There are very powerful disinflationary forces and powerful forces holding down rates.”

“The size of the Main Street Lending program is expected to grow over time, the Fed will revise the program if needed.”

Market reaction

The US Dollar Index struggles to make a decisive recovery after these remarks and was last seen losing 0.5% on the day at 92.80.