Comments in the virtual press conference on Jan 27, 2021:
- There are as many people unemployed now as at the peak of the financial crisis
- Not for us to play a role in talking about specific policies
- Shocks from pandemic was unprecedented in modern economic history
- If you look at what's been driving asset prices in the past few months it's been the vaccine and fiscal policy
- "The connection between low interest rates and asset values is probably something that's not as tight as people think"
Oh man, that quote blows my mind. Let's wait until he tapers/hikes (if ever) and revisit that line.
- We will be patient and won't react to small, transient inflation increases
- We think it's very unlikely that anything we see will result in sustained problematic inflation
- Of course we would have the tools to deal with high inflation if it were to arise
- It's too early to focus on tapering dates. We'll signal that well in advance of what will be a 'pretty gradual' taper
- Any focus on an exit is premature
- I'm much more worried about falling short of a complete recovery than inflation
- Removal of 'medium term' from statement regarding 'considerable risks' is because the risks are now more in the near-term but highlights that overall outlook is better
- Banks are not experiencing the kinds of losses they expected and they're reversing those reserves
