Bostic: Relying Solely on Fed Includes Risks

The President of the Federal Reserve Bank of Atlanta, Raphael Bostic, said on Monday that monetary policy tools are not the best way to confront the COVID-19 crisis, signaling fears regarding the failure of the Congress in agreeing on a new stimulus package.

“We have signaled pretty clearly that we are going to continue positioning our policy to provide support. But I think there is a risk thinking that the Fed’s tools are the exclusive or the best positioned tools to get the economy into a more stable trajectory.”

“This is a public health crisis and I think distracting from that reality could get us to a place where we are focusing on the wrong thing.”