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Federal Reserve’s Mester is seeing fragility in the economic recovery.

Key quotes

Assuming vaccine available distributed by Q321.

Sees fragility out there in economy recovery.

Policy choice is between faster recovery or a slower slog.

Timing of fiscal stimulus less important than package.

Fiscal policy is what can really make a difference. 

Our policy is very accomodative.

Recovery will continue but will be slower.

Disappointing that fiscal talks halted.

Lots of households, small businesses still need help.

Market implications

US dollar has been higher on the day as the risk markets fell over on the back of the US president Donald trump cancelling talks on stimulus ahead of the US election.

Fed’s Jerome Powell was also downbeat when he spoke early in the US session.