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.