Fed Officials’ Latest Comments on US Economy
Arslan Butt • 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.”