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