A full economic recovery in the US is a good way off and it will take continued support to sustain a robust recovery, Randal Quarles, Vice-Chair of the Federal Reserve, said on Wednesday.
“Momentum in consumer spending is strong but job gains may slow and the business spending outlook is uncertain,” Quarles added while delivering his prepared remarks to the Institute of International Bankers, as reported by Reuters.
Additional takeaways
“Asia is seeing strong rebound but trade has been slower to increase.”
“Prospects are good for the US and other advanced economies but the hole is deep, downside risks remain.”
“Global policymakers need to be ready to act further.”
“Commercial real estate poses downside risk to business sector.”
“Indicators of future inflation do not point to rapid acceleration.”
“Will be more patient in reacting to small upward deviations in inflation, given the Fed’s new focus on fixing employment shortfalls.”
“Fed hopes to quicken pace of recovery through forward guidance.”
Market reaction
The US Dollar Index showed no reaction to these remarks and was last seen gaining 0.3% on the day at 94.25.
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