Powell opening statement: We're strongly committed to using all our tools

Author: Adam Button | Category: Central Banks

Highlights in Powell's opening statement

Highlights in Powell's opening statement 
  • Decline in current quarter in GDP is likely to be the most-severe on record
  • Unemployment rate currently likely understates current unemployment rate
  • Some indicators indicate a rebound. Cites auto and retail sales in some sectors
  • Some indicators suggest stabilization in some sectors
  • Indicators of long-term inflation expectations remain fairly stable
  • We all want to get back to normal but a full recovery unlikely until people fee safe
  • Preserving the flow of credit is necessary
  • Ongoing purchases have improved financial conditions
  • We will increase holdings of holdings at least at the current pace, prepared to adjust as needed
  • We will continue to use powers forcefully, aggressively and proactively
  • Will put tools back in the toolbox 'after the crisis has passed'
  • Yield curve control effectiveness 'remains an open question'
The comment about yield curve control took a bit of the winds out of the sail of the risk trade.

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