Fed’s Brainard: Apart from virus, biggest downside risk to outlook is no new fiscal aid

Fed Governor Lael Brainard was out with some comments during the early North American session on Wednesday and called for more fiscal support from Congress. Brainard said that more stimulus is needed to address a recovery that so far has left out large parts of the economy.

Key Quotes:

• Apart from the virus, the biggest downside risk to her outlook is no new fiscal aid.
• Premature withdrawal of fiscal aid risks entrenching recessionary dynamics.
• US recovery highly uncertain, highly uneven.
• US GDP has in 3Q likely reversed more than half of its first-half decline.
• Sees inflation below 2% goal for the next few years.
• US interest rates are likely to stay below neutral for a period after liftoff.
• Fed in the months ahead of clarifying how asset purchases to best work with forward guidance.