Fed’s Bullard: Economy may improve faster than expected, but will keep current policy
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The US economy may recover quickly from coronavirus pandemic but that would not call for a change in the Federal Reserve (Fed) bank’s current policy, said St Louis Fed President James Bullard while speaking in a Wall Street Journal (WSJ) interview this Tuesday.
He added: “I like the monetary policy right now.”
Further comments
“Don't think the Fed has to do anything differently now or going into next year.”
“Economy may improve faster than markets think, but Fed will keep the current policy.”
“Hopeful that policy is right to spur a faster recovery.”
“More fiscal stimulus will make forecasts "that much rosier".
Market reaction
The US dollar paid little attention to the comments from Fed’s Bullard, as the dollar index remained in the bearish consolidation phase around 93.50 levels. The optimism over the US fiscal stimulus deal continues to weigh on the safe-haven dollar.
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