Fed's Mester: Economy not at level where Fed needs to dial back support
|"The economy is not at the level where the Fed needs to dial back support because of financial stability risks," Cleveland Federal Reserve President Loretta Mester said on Tuesday.
Additional takeaways
"Central bank would need to communicate with the public about its views on financial stability risks."
"If Fed could do all it could to maintain structural resiliency that will eliminate the need for tough choices later."
"The US economy is not yet at the point of facing high financial stability risk."
"There is evidence that there is some frothiness and the Fed is watching that."
"Some of the structural issues revealed by pandemic including in treasury market will need work."
"The Fed needs to look at communication tools to be sure it isn't contributing to market volatility."
Market reaction
These comments don't seem to be having a significant impact on market sentiment. As of writing, the S&P 500 Index was up 0.4% on a daily basis at 4,241.
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