Cleveland Fed President Loretta Mester said on Tuesday that she expects the US economy to be weak in the first few months of 2021, as reported by Reuters. Additional takeaways “If vaccinations roll out, a strong pickup in growth is expected in the second half of 2021.” “Not expecting to see substantial further progress toward the Fed’s goals this year.” “We need more accommodation than we have in the past to lift inflation to the Fed’s 2% target.” “Would probably not be upset if inflation reaches 2.5% because it likely would not move quickly.” “The real issue now is inflation that can get too low.” “Low yields can create financial stability risks but risks underlying the financial system right now are not excessive.” “Monetary policy is well-calibrated.” “Would like the Fed to begin to taper asset purchases next year but it really depends on the economy.” “If vaccine rollout is much slower than expected that would slow economic growth and lower outlook.” “The Fed has tools to deal with instability in financial markets.” Market reaction The US Dollar Index largely ignored those comments and was last seen losing 0.13% on the day at 89.75. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Germany: Conservative-led coalition is a euro-friendly and most likely scenario FX Street 11 months Cleveland Fed President Loretta Mester said on Tuesday that she expects the US economy to be weak in the first few months of 2021, as reported by Reuters. Additional takeaways "If vaccinations roll out, a strong pickup in growth is expected in the second half of 2021." "Not expecting to see substantial further progress toward the Fed’s goals this year." "We need more accommodation than we have in the past to lift inflation to the Fed’s 2% target." "Would probably not be upset if inflation reaches 2.5% because it likely would not move quickly." "The real issue now is inflation that… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
