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

Helmholtz Watson

Powell opening statement:


Decline in current quarter in GDP is likely to be the most-severe on record
Unemployment rate currently likely understates current unemployment rate
Some indicators indicate a rebound. Cites auto and retail sales in some sectors
Some indicators suggest stabilization in some sectors
Indicators of long-term inflation expectations remain fairly stable
We all want to get back to normal but a full recovery unlikely until people fee safe
Preserving the flow of credit is necessary
Ongoing purchases have improved financial conditions
We will increase holdings of holdings at least at the current pace, prepared to adjust as needed
We will continue to use powers forcefully, aggressively and proactively
Will put tools back in the toolbox ‘after the crisis has passed’
Yield curve control effectiveness ‘remains an open question’