In a Bloomberg TV interview, Atlanta Federal Reserve President Raphael Bostic who has said the economy will need more help in the months ahead commented on the recent news surrounding All US emergency programs created by the Cares Act will expire Dec 31
Says was a bit surprised by the Treasury's decision.
Says given where economy is, would be prudent to keep emergency facilities open.
Says uncertainty has kept people from engaging in economy.
Says looks like will be well into 2021 until we achieve equilibrium.
Says emergency lending tools have been helpful.
Says presence of facilities gave people confidence, even when they weren't used.
Says as federal relief expires, will leave people at risk.
Risk of economic contraction, but not in his model now.
Expects 2021 to show positive growth and to pick up as year goes on.
When households burn through their savings will signal a tipping point requiring more fed engagement.
Best way forward on recovery is `all hands on deck'.
With the US elections now settled, as far as the markets are concerned, the focus is on the economy and how Congress will resolve a fiscal aid package.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.