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

For bank trade ideas, check out eFX Plus
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose