Comments from Powell for the Peterson Institute
- Fed will continue to use tools 'to their fullest' until crisis has passed, recovery well underway
- Scope and speed of downturn 'without precedent'
- More fiscal aid may be worth the cost to limit lasting harm
- Fiscal trade off is decision for our elected officials
- Outlook highly uncertain and downside risks significant
- Virus raises concerns of long-term economic harm
- Policies will need to be ready to respond to a range of outcomes
- Full text
There's no change in signals in the initial comments. The pledge to use the Fed's tools is right out of the FOMC statement.
Importantly though, he didn't push back against negative rates and the market is taking that as a signal. The US dollar has softened and gold rose $5.
