Fed's Harker speaking

  • There is only so much policymakers can do to affect the economy
  • US has failed to control the coronavirus
  • He forecasts -20% real GDP growth in the 1st half of 2020
  • Sees 13% growth in the 2nd half
  • He projects a 6% drop in the GDP for the year, pending the path of the coronavirus
  • It will be appropriate to maintain policy rate near 0 if the economy evolves as expected
  • Limited interest in Main Street loan program is a good sign because it means firms have access to capital
  • Main Street facility will be in place to offer funding if there is a another major downturn