Fed's Mester again - uncertainty around unemployment benefits is a risk

Author: Eamonn Sheridan | Category: Central Banks

Loretta Mester, President and CEO of the Federal Reserve Bank of Cleveland spoke earlier:


  • 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

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