Federal Reserve Bank of Cleveland President Loretta Mester said the U.S. central bank has probably not reached the end of its emergency actions to shelter the U.S. economy from the coronavirus pandemic.
“I know at the Fed, we’re likely not done,” Mester told an on-line discussion Friday hosted by the City Club of Cleveland. “We’re always looking for things where if we have a tool to be able to do it, and if we think it’s needed, we’re going to do it.”
The U.S. central bank has responded aggressively to blunt the effect of the coronavirus pandemic on the U.S. economy, launching an unprecedented range of emergency programs to support as much as $2.3 trillion in loans and slashing interest rates to nearly zero.
The Fed has more firepower to bring to bear if needed, and has already flagged state and local government finances as an area that may need more support, though Mester said that the Treasury Department should play the lead role.
32,385 in U.S.Most new cases today
-18% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.013 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23