Dallas Federal Reserve Chairman Robert Kaplan, said Tuesday that it supports the accommodative attitude, but added that it does not know whether the Federal Reserve should commit to keeping rates at zero, Reuters reported.
Additional conclusions
“There is no doubt that unemployment assistance has been vital for those who are out of work or working insufficient hours.”
“People can take advantage of the resurgence of the virus until local health authorities are overwhelmed.”
“A real downside over the next two quarters is if the resurgence gets so bad that it forces closures.”
“Banks, in general, have weathered the current crisis quite well and we are more concerned about the non-bank financial sector.”
“We must be careful to relax restrictions on banks until we are sure that we have overcome this.”
“We support the idea of ​​keeping the federal funds rate where it is while we fight the pandemic.”
“My concern is what happens after we have overcome the pandemic and the neutral rate rises.”
“There are likely to be more small business bankruptcies by the end of the year.”
Market reaction
Investors seem to be paying no heed to these comments. At the time of writing, the S&P 500 index it was virtually unchanged on the day at 3,550.
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Credits: Forex Street
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