Comments from the Fed Governor
- Policy will have to shift from stabilization to accmmodation
- There "may come a time" when yield curve control helps too but requires additional analysis
- There is a "thick fog" of uncertainty and downside risks predominate
- Time and magnitude of distribution of additional fiscal support will remain vital to strength of recovery
- Broad second wave of cases could reignite financial market volatilty
- Unclear whether rapid pace of labor market recovery will be sustained. Risks are to the downside
Brainard didn't offer much on the current state of the economy or high-frequency data. The general theme is that she's cautious and worried and that's similar to what we heard from Powell in his latest appearances. I don't see much here to move markets.
