Fed Officials’ Latest Comments on US Economy

According to San Francisco Fed President Mary Daly, the central bank has more tools in its shed to combat the economic impact of the

Arslan Butt•Friday, May 8, 2020•1 min read

According to San Francisco Fed President Mary Daly, the central bank has more tools in its shed to combat the economic impact of the coronavirus pandemic. Since the beginning of the pandemic, the Fed has cut interest rates down to near zero, announced several lending programs and bought back considerable debt.

Even as some states across the US look to restart economic activity, Daly cautions that economic recovery in the US will not be in V-shaped form as expected earlier. With limited sectors of the economy reopening cautiously and unemployment levels soaring past expectations, it will take a lot longer for the US economy to come out from this recession.

Meanwhile, Atalanta Fed President Raphael Bostic also indicated mixed results from the reopening of economies in the southern states of the country. While some retailers are seeing stronger than expected return of consumers, others are finding few takers.

Speaking with Reuters, Bostic stated, “Preliminary data we have, looking at cell phone numbers, suggest that movement has not gone up appreciably….Whether having an open economic policy is going to translate into economic activity — we are going to learn this in the next couple of weeks.”

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.