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

#23902
Helmholtz Watson
Participant

[size=5][b]Powell Q&A:
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We’re not thinking about raising rates, we’re not even thinking about thinking about raising rates

We think policy is currently well positioned, otherwise we would change it
The path ahead of the economy is highly uncertain
We had 128 month expansion but never got inflation to sustainably 2% so we have to be humble
We’re going to be deploying our tools, all of our tools, to the full extent for however long it takes to get back to full employment
We would be prepared to tolerate or I should say to welcome very low readings on unemployment without worrying about inflation
We’re not thinking about raising rates, we’re not even thinking about thinking about raising rates
Many differences between now and the Great Depression
We ultimately do see a full recovery over time
We could see significant job growth in the coming months
It’s way too early to be changing longer-run forecasts
There have been gains in market…(awkward pause) functioning. We don’t take that for granted
We’re now in the final run-up to starting Main Street facility
We’re prepared to adapt further with all our facilities
This is the biggest shock in living memory and the fiscal response has been large, forceful and very quick; it’s 14% of GDP
It’s possible we will need to do more and it’s possible Congress will need to do more
Some different possible approaches to $600 unemployment supplement are out there and look promising
The evidence of one jobs report is that we might have bottomed in May but we’ll see, we’re not going to overreact to a single data point
Main Street lending will start ‘soon’