Comments from the Dallas Fed President
- Challenge is getting through the next six months
- We could have negative growth in Q4 as virus surges
- Not ruling out economy slipping back into recession
- Doesn't know if more Fed bond buying is the answer
- Continues to call for fiscal support
- Critical that emergency lending programs continue beyond year end
- Better times ahead but we are going through a tough period
This debate about the Fed doing more isn't going to go away. I don't think they should even be thinking about it, given what's already in the pipeline but they have a hair trigger the moment they feel some pressure.
That said, it's going to be important to gauge how much easing the bond market is pricing in.