- Federal Reserve officials took to videoconferences, TV appearances, and interviews last week to offer their take on the ailing US economy and what must be done to save it.
- Vice Chair Richard Clarida and Minneapolis Fed President Neel Kashkari agreed that the coronavirus’ labor-market fallout is likely worse than already-dismal metrics suggest.
- Several officials suggested additional fiscal and monetary policy will be needed to ensure an even and steady rebound.
- While St. Louis Fed President James Bullard forecasted “relatively rapid growth” in the third quarter, Chicago President Charles Evans warned the odds of his similar base case “may only be a bit higher” than a bleaker situation.
- Here’s what six central bank officials said about the economy through the first week of May.
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While Federal Reserve Chair Jerome Powell has kept his cards close to the chest amid the ongoing coronavirus-led downturn, various central bank officials are offering insight on how they see an eventual economic recovery playing out.
Regional Fed presidents and vice chairs took to interviews, videoconferences, and TV appearances throughout the week as investors digested the central bank’s hefty stimulus measures. Most avoided offering detailed projections, but their remarks hinted at a need for more stimulus, as well as a warning of a prolonged rebound. Some even warned of the economic danger posed by keeping relief policies in effect for too long.
The central bank has slowed its roll in recent weeks after cutting its benchmark interest rate to near zero, creating nine emergency lending facilities, and buying hundreds of billions of dollars in Treasurys and mortgage-backed securities. Powell indicated on April 29 that the bank’s rates will remain low “until it is confident that the economy has weathered recent events,” but strayed away from offering additional forward guidance.
Here’s what six Fed officials recently said about future relief efforts, economic pain points, and a nationwide recovery.