Comments from the Fed Governor

  • Policy will have to shift from stabilization to accmmodation
  • There "may come a time" when yield curve control helps too but requires additional analysis
  • There is a "thick fog" of uncertainty and downside risks predominate
  • Time and magnitude of distribution of additional fiscal support will remain vital to strength of recovery
  • Broad second wave of cases could reignite financial market volatilty
  • Unclear whether rapid pace of labor market recovery will be sustained. Risks are to the downside

Brainard didn't offer much on the current state of the economy or high-frequency data. The general theme is that she's cautious and worried and that's similar to what we heard from Powell in his latest appearances. I don't see much here to move markets.