Fed’s Kashkari suggests 4-6 week shutdown – Reuters

Neel Kashkari, president of the Minneapolis Federal Reserve Bank, crossed wires, via CBS’ “Face the Nation,” during the weekend. The Fed policymaker pushed for a lockdown while also saying that the US Congress can well afford large sums for Coronavirus (COVID-19) relief efforts, per Reuters.

Key quotes

The US economy could benefit if the nation were to “lockdown really hard” for four to six weeks.

If we don’t do that and we just have this raging virus spreading throughout the country with flare-ups and local lockdowns for the next year or two, which is entirely possible, we’re going to see many, many more business bankruptcies.

That’s going to be a much slower recovery for all of us.

Those of us who are fortunate enough to still have our jobs, we’re saving a lot more money because we’re not going to restaurants or movie theaters or vacations. That actually means that we have a lot more resources as a country to support those who have been laid off.

Congress should use this opportunity to support the American people and the American economy.

If we get the economy growing, we will be able to pay off the debt.

FX implications

Although the early-Asian morning fails to reflect the news, the headline suggests further clarity over the US dollar’s pullback moves from over two-year lows on Friday. As a result, the latest weakness in the Antipodeans is likely to be challenged. That said, the AUD/USD trades near 0.7130 after Friday’s U-turn from an 18-month top.