Powell’s comments for the Peterson Institute
- The Fed will continue to use its tools “to the fullest” until the crisis is over and the recovery is well underway
- “Unprecedented” Slowdown Scope and Speed
- More tax assistance could be worth the cost to limit lasting damage
- The fiscal compromise is a decision for our elected officials
- Very uncertain outlook and significant downside risks
- The virus raises concerns about long-term economic damage
- Policies will need to be ready to respond to a range of outcomes
- Full Text
There is no change in signals in the first comments. The commitment to use the Fed’s tools came straight out of the FOMC statement.
Most importantly, it has not pushed negative rates down and the market is taking this as a signal. The US dollar softened and gold rose $ 5.