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The economic recovery in the US could stall if fiscal help to households and businesses continue to dissipate, Kansas City Federal Reserve Bank President Esther George said on Thursday, as reported by Reuters.

Additional takeaways

“Risks around the US outlook are substantial.”

“Viewing the new inflation framework as a tolerance for inflation moderately above 2% for a time, less so as a promise to engineer it.”

“Inflation moderately above 2% unlikely to warrant a policy response if the economy is otherwise doing well.”

“While the new statement reflects patience in awaiting inflation, not yet clear how much patience given uncertainty over how pandemic will impact prices.”

“Will be important to provide detailed guidance on asset purchases as a matter of transparency and accountability.”

Market reaction

The US Dollar Index gained traction in the early American session and was last seen gaining 0.14% on the day at 93.74.