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Even if the coronavirus is contained relatively quickly, a great number of firms are going to have difficulty surviving, Boston Federal Reserve President Eric Rosengren argued on Tuesday, as reported by Reuters.

“We have seen many banks tighten lending standards significantly,” Rosengren added. “The assumption that we wouldn’t have a second wave of virus and that we would have a fiscal policy were two wrong assumptions.”

Rosengren further noted that he is worried that volatility cycles will get worse if they don’t take financial stability seriously.

Market reaction

The US Dollar Index largely ignored these remarks and was last seen posting small daily losses at 92.75.