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The United States has an extraordinary fiscal capacity to borrow and spend as needed to get through the coronavirus crisis, Minneapolis Fed President Neel Kashkari said on Tuesday. “Now is not the time to be cautious in spending.”

Commenting on the policy outlook, Kashkari repeated that the Fed has other tools it can use before introducing negative interest rates.

Market reaction

The US Dollar Index edged slightly higher in the last minutes and was last seen losing 0.1% on the day at 99.50.