The Federal Reserve and Congress may need to consider additional measures to help the economy during the COVID-19 pandemic, the central bank official said on Thursday.
“Depending on the course of the virus and the depth and duration of the recession it causes, additional support from monetary and fiscal policies may be necessary,” said Richard Clarida, deputy chairman of the Fed, at the meeting. ‘an online interview. Talk to the New York Association for Business Economics.
Clarida said there are many things the central bank does not know about the potential course of the economy.
“But there is one thing I am sure: the Federal Reserve will continue to act forcefully, proactively and aggressively as we implement our toolbox, including our balance sheet, advance directives and credit facilities, to provide essential support to the economy during this difficult time and do everything we can to ensure that the recovery from this recession, once it begins, is as robust as possible, “said Clarida in her remarks. prepared.
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Clarida is seen as a close relationship of trust with the chairman of the Federal Reserve, Jerome Powell, and with the chairman of the New York Federal Reserve, John Williams, is seen as a form of political decision by the central bank.
Williams spoke earlier on Thursday and his comments were quite similar to Clarida’s speech.
Lily: Fed Fed Williams rebounds after a few more “very difficult” months
Clarida said she expects the economy to start growing sometime after June. and the unemployment rate should start to drop.
He said the COVID-19 contagion shock will be deflationary, not only in the months to come, but in the years to come.
He noted that core inflation was already below the Federal Reserve’s 2% target before the pandemic.
The Fed also bought more than $ 2 trillion in treasury bills and asset-backed securities to help the economy. The slow purchases recently reflect the substantial improvement in market performance, said Clarida.
Benchmark for US stocks United States They fell Thursday due to signs that US-US relations were down. United States And China is deteriorating. Dow Jones industrial average
DJIA
He fell more than 100 points in the midday trade.
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