Thursday, 26 March, 2020
The main message from Fed Chair Powell in his NBC Today appearance
FED: The main message from Fed Chair Powell in his NBC Today appearance this
morning is that the Fed sees the economy bouncing back later in the year, BUT
the key is that the Coronavirus situation will have to get under control before
that happens. Seems at odds with what appears to be White House leanings toward
an early economic restart. Fed still has room to manoevre but sees lending
programs as a ‘bridge’ to the recovery.
– On the timing outlook: When the virus is under control, then economic activity
can resume … and we want to make the rebound as vigorous as possible. The
sooner we get through this period and get the virus under control, the sooner we
can recover. The virus is setting the timetable.
– On Fed lending: What we see is SMEs cannot borrow through their usual channels
– we’re trying to create a bridge to the next period of economic strength. Our
lending programs are the main thing we are doing to support the economy. We’re
not going to run out of ammunition.
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