Fed’s Kashkari: We will at least have a mild recession

In a CBS interview, Federal Reserve's Kashkari said, "we will at least have a mild recession."

Key comments

Fed will ensure banks have cash to meet demands, but banks are in a sound position right now.
Fed is being aggressive but there is more that we can do if necessary.
Fed has infinite cash to support the financial system.
Fed is not out of ammunition.

Market implications

US stock futures opened sharply lower in Asia and risk-off continues to reverberate on the news that there are disagreements over the US coronavirus bill in the Senate, a bill that is required to implement an economic stimulus and rescue plan to combat the giant economic blow from the coronavirus outbreak. Dow Jones Industrial Average futures fell more than 900 points, or 5%, to hit their “limit down” level. S&P 500 and Nasdaq 100 futures were also down around 5%.

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