Fed chair, Jerome Powell, speaks on NBC Today
- Effectively, every $1 of Treasury backstop can support $10 worth in Fed loans
- Fed ready to step in whenever credit is not flowing
- And will continue to do it aggressively
- Current crisis is not a typical downturn
- When the virus is under control, confidence will return
- Says we could see a good rebound on the other side
- We may well be in a recession
- The priority should be to get the virus under control
- If we get the virus under control, the economy can resume
- There is nothing fundamentally wrong with our economy
- Expects economic activity to resume in 2H this year, but depends on the virus
- We're not going to run out of ammunition when it comes to upcoming lending
- Fed still has policy room for more action
A bit of small talk initially but then he gets to the point with some key messaging (in bold) with regards to monetary policy. The fact that he made that point is seeing the dollar ease a little more on the day as we see USD/JPY hit a low of 109.78.
