Loretta Mester Speaking

Cleveland Fed's Pres. Loretta Mester speaking

  • Many households and businesses are really bearing the brunt of that shut down caused by coronavirus
  • We are going to get very ugly economic numbers
  • Public policy needs to make sure that shut down doesn't leave a lasting effects on the economy
  • Emergency facilities launched by the Fed are meant to make sure the markets work
  • Brunt of fighting the virus a lot of it has really fallen on the states and Fed is making sure the municipal bond markets estate working
  • US economy had a good foundation before the pandemic, unlike 2008 crisis which was caused by a crumbling of financial system
  • Global trade leads to efficiencies but pandemic is a reminder that diversifying supply chain can provide benefits
  • I know at the Fed, were likely not done
  • Not that concerned about growth and Fed's balance sheet
  • Market function not totally back but have seen improvement
  • him him him unsure if recovering is V or U-shaped or something different
  • my own view is that it will be something in between
  • hard to model, since economy was taken down to deliberately
  • pandemic economic response understanding shifts quickly