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The Federal Reserve’s actions so far have been allowing them to buy some time for the US economy through looser financial conditions, Federal Reserve Vice Chairman Richard Clarida said on Thursday.

Additional takeaways

“Financial conditions remain loose depends on the outcome of efforts to control coronavirus.”

“Pandemic will be disinflationary as the shock to demand is greater than the shock to supply.”

“Hard to forecast economy given range of unknowns but expecting growth to resume, unemployment rate to fall in second half of the year.”

“Recent slowing pace of Fed’s Treasury purchases was a result of improved market functioning.”

“Fed will do more if necessary, joining other policymakers in noting the possible need for more fiscal response as well.”

Market reaction

The US Dollar Index largely ignored these remarks and was last seen gaining 0.2% on the day at 99.35.