New York Fed Gov. and voting member Fed Williams speaking
- US economy hundred stress from coronavirus outbreak in ways not experienced in our lifetimes
- full-scale of the economic consequences is still unknown
- more economic pain is still to come
- Fed cannot act alone fiscal policy has a critical important role
- coronavirus crisis requires innovative thinking and bold action. Fed doing utmost to lessen below
- New York Fed is taking rapid and significant actions to promote liquidity and stability in the financial markets
- stress is in financial markets will not entirely abate until pandemic is behind us
Answers questions:
- Fiscal policy plays the main role during pandemic
- central bank is limited in what we can do and should do and fiscal policy is playing the main role
- Fed is focusing on where the economy is not functioning well to restore liquidity and make sure credit is flowing
- key for success is making sure the businesses and families are able to bridge through this period and try to get back to normal
- inflation likely to be lower than we want, not higher
- Fed ready to use all of its tools to achieve goals
- uncertainty is up demand for dollars, treasuries
- it may be a few months or quarters before people are willing to go back to public events such as Broadway shows or concerts
