Fed's Rosengren expects significant near-term US economic weakness (but there are positive longer run tailwinds)

Author: Eamonn Sheridan | Category: Central Banks

Rosengren is president and CEO of the Federal Reserve Bank of Boston

Comments come via an interview he had with Reuters:

  •  labor market could be stagnant for the next couple months until we have much more widespread vaccinations
  • says economy could face significant weakness in the near term as virus infections and hospitalizations rise
  • arrival of effective vaccines and outlook for more fiscal support are positive longer run tailwinds
  • a fiscal program that provides grants to struggling businesses might be the best way to provide support
  • some banks weren't willing to take risk through main street lending program
  • future need for emergency lending programs from fed would depend on what happens with pandemic and vaccinations
  • mid-sized companies could need more lending support in scenario where vaccine is not effective
  •  he has had routine conversations with incoming Biden administration about structure of emergency lending facilities

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