High-frequency data in the United States shows economic activity has slowed as coronavirus cases have increased, Cleveland Federal Reserve Chairman Loretta Mester told CNBC on Friday.
“Businesses have tempered hiring, the virus is really driving things.”
“The Fed’s target is still 2% inflation, but the new monetary strategy will allow for higher inflation after a period of low inflation.”
“There is no mathematical formula, the strategy is to stabilize inflation expectations.”
“The Fed will take financial stability into account when shaping its monetary policy.”
“The stock markets are up depending on the direction investors think of the economy.”
“I understand that Fed liquidity is fueling equity gains, but I don’t think the Fed is contributing to an asset bubble.”
The greenback continues to weaken against its rivals after these comments. At the time of this writing, the US dollar index was down 0.78% on a daily basis to 92.26.