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“It will take time to get a better sense of economy’s trajectory,” Federal Reserve Vice Chairman Richard Clarida said on Thursday. “We will be watching during recovery at whether the underlying capacity of the economy is intact or been damaged.”

Clarida noted that the recession in the US likely started in early March and added that the strength of banks is not a concern at the moment. “The Fed was close to conclusions on framework review when crisis put it on the back-burner,” he further acknowledged.

Market reaction

These comments failed to help market sentiment improve. As of writing, Wall Street’s three main indexes were down between 0.35% and 0.8%.