Comments from the Boston Fed President:
- Fed will continue to purchase long-term assets until the economy is on a stronger economic footing
- We are likely to see a significant pickup in consumption in H2
- More needs to be done to make financial infrastructure more resilient and avoid future shocks similar to March
- Highly accommodative fiscal and monetary policy will provide significant tailwind for risky assets in 2021
I feel like Rosengren is a lonely voice in the wilderness about the problems of March 2020 and fixing. Because the Fed stepped in so quickly and started buying $300 billion in bonds per day, it quickly closed the wound but that's a situation that can never happen again. Yet it seems like there's no political will to do anything but print more money and pretend there will never be an unexpected crisis.
