Fed’s Williams: We Are Still in an Extraordinary Situation With COVID

Regarding the fiscal policy and additional stimulus, New York Federal Reserve President John Williams noted that they are still in an extraordinary situation with the coronavirus outbreak, as reported by Reuters.

“Fed’s inflation target will call for inflation going modestly above 2% for some period of time.”

“Climate change is a risk to financial stability and important for financial institutions to understand the risks of loans they make.”

“The reason the economy is still going is because we know people still have some of the stimulus checks and unemployment checks.”

“Those saved benefits are helping people pay rent and put food on the table.”

“Economic indicators still show the economy on a positive trajectory.”

“Rising COVID cases puts a question mark on the economy and expects growth to slow.”

“Even today unemployment is still very high and we’re still in a deep hole.”

“The global economy is still quite weak so there is downward pressure on inflation.”

“Issue will be inflation lower than we want in the next few years.”

“Financial markets are more focused on covid because that’s the primary driver of the economy.”

“Fed’s decisions on interest rates and monetary policy will depend on what happens with the economy.”

“Monetary policy is having real effects on jobs and the economy.”