Fed's Clarida speaking on CNBC
- We're living through the most severe contraction in activity and surge in unemployment we seen in our lifetimes
- Recovery could begin and 2nd half of the year
- We are using our full range of tools, rates, balance sheet, forward guidance and lending facility to support the economy
- We're in for a period of very difficult data we haven't seen for the economy in some time
- Unemployment rate is going to reach to levels not seen since the 40s
- There can be a rebound in the economy once business reopens and people return to work, but it's going to take some time
- Fed is building a bridge to recover with lending facility that can fill in until the market can recover
- It may well be the case that more policy support is needed from the Fed and some fiscal policy as well
- The FOMC was united under chair Powell's leadership to set up temporary emergency facilities that purchase assets such as corporate bonds
- Focus as policymakers is to make sure the economic recovery when begins is as robust as possible but we can't minimize that were in a recession
- Fed is doing everything we can to minimize the amount of's scarring to the economy
- Fed can expand lending programs as needed
The US stocks are seeing some pull back from the highs on the back of the Clarida comments. The S&P index is trading at 2876.90. The high price reached 2898.23. The Nasdaq index is at 8836.52 after trading as high as 8909.96.
