Federal Reserve To Continue QE and Use Powers Forcefully. Aggressively and Proactively

Helmholtz Watson

Fed Governor Brainard:

There “may come a time” when yield curve control helps too but requires additional analysis
There is a “thick fog” of uncertainty and downside risks predominate

Forward guidance is a ‘vital’ way to provide necessary accommodation
Policy will have to shift from stabilization to accommodation

Time and magnitude of distribution of additional fiscal support will remain vital to strength of recovery
Broad second wave of cases could reignite financial market volatility
Unclear whether rapid pace of labor market recovery will be sustained. Risks are to the downside