US Fed Member Mister indicated that the economy is going to record very poor economic data. She made further statements as follows:
Many companies and households are already bearing the brunt of the closure caused by the coronavirus.
Public policy needs to ensure that the closure does not have lasting effects on the economy.
Emergency facilities launched by the Fed aim to make sure that markets are supported while health officials carry the greatest burden of fighting the virus.
The bank makes sure that the bond markets are operating.
US economic fundamentals were strong before the outbreak, unlike the 2008 crisis caused by the collapse of the financial system.
I am not worried about the US federal budget and growth rates.
The markets are no longer interested in these matters.
I'm not sure if the recovery is V or U shaped but my own opinion is that it will be something in between.
It is difficult to model without being able to respond quickly to the economy.
