<insert "Ya think???" here>
Kaplan is head of the Fed's Dallas branch.
- says the situation around cov1 COVID-19 has changed pretty meaningfully ove the last couple of weeks
- Fed's rate cut move can help offset tighter financial conditions
- stock still at elevated levels by historic standards
- monetary policy will not take away stock market volatility
Bolding mine. Uh-oh.,
More:
- too soon to judge what the Fed will do at the March meeting
On that one … even the Fed is a day trader now?
More:
- a week is an eternity in this situation
Aaaaannnddd I have my answer.
More:
- says he will be watching the path of diagnosed cases, will factor that into March meeting decision
- this is not the time to be making long term prognostications
- says normal economic data that we are used to relying on is not very useful
- says he has ramped up conversations with business contacts to understand how companies, consumers might react
- says companies say they have come to grips to some extent with supply aspect of coronavirus effect
- says what companies are doing now is trying to understand the 'demand' aspect of coronavirus effect
- In January thought US GDP could grow 2.25% or more this year
- severe deterioration is likely, could last a quarter or a quarter and a half
- economic forecasts to be released in March will look different than they did in December
