Fed's Bowman: Path to recovery will be bumpy, uneven

The recent data suggest that the US economy is recovering at a rapid pace, Federal Reserve Governor Michelle Bowman said on Wednesday but further noted that unemployment is still quite high, as reported by Reuters.

Additional takeaways

"Continued monetary and targeted fiscal policy support will likely be needed."

"Path to recovery will be bumpy, uneven."

"Asset prices vulnerable to significant price declines should pandemic seriously worsen."

"Fed is watching the commercial real estate market closely for signs of further stress."

"The pace of recovery will vary by area, heavily influenced by virus and policy decisions."

"PPP loans will continue to push up bank earnings in next several quarters, net margins to remain under pressure."

"PPP lending has driven asset growth at small banks so as to exceed certain reporting, regulatory thresholds."

"Fed exploring supervisory, regulatory challenges caused by temporary asset growth from PPP lending."

"Smaller banks may benefit from further regulatory relief."

Market reaction

The US Dollar Index largely ignored these comments and was last seen losing 0.05% on the day at 93.83.