Fed's Bostic says he was a bit surprised by the US Treasury decision
Bostic is president and chief executive officer of the Federal Reserve Bank of Atlanta.
- says was a bit surprised by treasury decision
- says given where economy is, would be prudent to keep emergency facilities open
- says uncertainty has kept people from engaging in economy
- says looks like will be well into 2021 until we achieve equilibrium
If you are unfamiliar with how Fed officials conduct themselves in public when they have a disagreement with a partner institution, when Bostic says he is 'a bit surprised' it means he is apoplectic with disgust and rage. In case you are wondering.
Mnuchin has been on the media saying he 'hopes' the funds recalled can by out to fiscal use. If so that's a positive step. But it could well be smoke.
More from the Bos:
- says emergency lending tools have been helpful
- presence of facilities gave people confidence, even when they weren't used
- as federal relief expires, will leave people at risk
- we are committed to doing all that we can
- the best way to move forward is for monetary and fiscal policy pulling in same direction
- says paying a lot of attention to what's happening with jobs
- says a lot of temp job loss have converted to permanent losses, shows weakness
- says when households burn through their savings will signal a tipping point requiring more fed engagement
Oh yeah, Bostic is Not happy with this move from Mnuchin.
In happier times.