THE FED REMAINS SILENT ON CHANGES TO QE AND CALLS FOR FURTHER FISCAL STIMULUS
- Chair Powell underlined the progress the economy has made so far but stressed the downside risks related to Covid.
- The Fed is not out of ammunition, but lost income due to the crisis can only be restored by fiscal policy, he reiterated.
- FOMC members have discussed on how to improve QE should the economy require additional momentary stimulus. Details may be disclosed at the December meeting.
- Starting from December, the information on the FOMC economic thinking will be enhanced, with more details on the balance of risks around the outlook.