Fed's Barkin: Existing level of bond purchases providing pretty strong stimulus
The existing level of bond purchases is providing a pretty strong stimulus and an extension of duration could be an option if the Fed decides more stimulus is needed, Richmond Federal Reserve President Thomas Barkin said on Monday, per Reuters.
Key takeaways
"We are concerned workers are frozen in place by nature of pandemic, hope that former jobs will still return."
"Still hard to see a huge drop in spending, other activity as virus surges."
"Seeing constraints to recovery in the near term but better prospects over the medium term given the vaccine."
"The end of Main Street and other programs on December 31 represents a risk but also there is no certainty any particular backstop will be needed."
Market reaction
The US Dollar Index extends its rebound during the American trading hours and was last seen posting small daily gains at 91.85.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
