Loretta Mester, President and CEO of the Federal Reserve Bank of Cleveland spoke earlier:
- Fed's Mester: There are many indications US economic activity slowed in recent weeks
- Fed's Mester says the financial system is in a good place to weather risk
- says forward guidance is a tool she will keep in her kit for when the time is right
- she is still hopeful that congress will pass a fiscal stimulus bill because the need is out there
- uncertainty around unemployment benefits and aid to businesses is a risk to the economic forecast
- businesses cutting wages and employment can affect household spending
- given the nature of this shock to the economy she would be prepared for fed to take more credit risk in emergency lending facilities
- says she hopes the US economy can avoid another shutdown and that needed restrictions are limited to targeted areas
