In the current economic downturn, the monetary policy is in a second-chair role, first responders are healthcare and fiscal authorities, Chicago Federal Reserve Bank President Charles Evans said on Thursday.
Additional takeaways
“Expiration of extra unemployment insurance leaves a big hole in aggregate demand.”
“Expecting a much slower recovery if further fiscal aid is not forthcoming.”
“Some businesses who need workers have had a hard time getting them due to a variety of reasons.”
“If the vaccine is available this fall would expect faster growth next year, but would not expect boom as soon as the fourth quarter.”
“Virus is a global phenomenon, the effect on trade, supply chain, decisions on where to build factories is uncertain.”
“Fed’s new average inflation targeting framework will be a good thing for the economy.”
“Framework gives fed a little more latitude to shoot for above-2% inflation.”
Market reaction
These comments don’t seem to be having a significant impact on the greenback’s performance against its major rivals. As of writing, the US Dollar Index was up 0.16% on the day at 92.80.
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