The US Federal Reserve is positioned to be patient as it follows the outlook for the virus and the economy, Kansas City Federal Reserve Bank President Esther George said on Thursday, as reported by Reuters.
"Monetary policy is set to remain highly accommodative for some time."
"It is too early to discuss pulling back on accommodation given continue elevated unemployment, below-target inflation, and the uncertainties surrounding the outlook."
"Recent rise in longer-term interest rates does not in my view warrant a monetary policy response."
"Much of the increase in yields likely reflects growing optimism in the strength of the recovery."
"Any additional monetary stimulus could exacerbate the unevenness that has been the defining characteristic of the pandemic downturn."
"The outlook for agriculture improved in large parts of the country but risks remain."
"The unemployment rate of 6.3% likely underestimates the amount of slack in the labour market."
"The stage is set for a strong recovery once widespread vaccination is achieved."
The US Dollar Index showed no immediate reaction to these remarks and was last seen losing 0.45% on the day at 89.78.
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.