More from Fed's Mester - wants to stay away from negative rates

Earlier remarks from the Cleveland Fed head are here:

• Fed's Mester says further direct fiscal support is needed

Q&A following now.

• she would like to stay away from negative rate because of the effects it would have in money market
• no tool is off the table
• her preference is to use forward guidance, other policy tools first

More:

• says there are announcement effects for new facilities that lead to market improvements because investors know the Fed is standing ready
• says if we had a financial crisis on top of a pandemic that would not be very good for main street
• says Fed is focused on helping capital markets function, not trying to set prices
• says she doesn't think we're doomed to low inflation forever or sub-par employment, but there are different scenarios
• says buying corporate bond ETFs versus bonds outright is one way to support the market efficiently