Dallas Fed President Robert Kaplan warned that the “trends are in the wrong direction” regarding coronavirus trends. He’s still expecting the economy to be around -2.5% smaller by year end, comparing to last year. Growth is expected to be around 3.5% next year. However, rising coronavirus spread could drag down growth this year and early next year.
Separately, Cleveland Fed President Loretta Mester said Fed Chair Jerome Powell will discuss with the Treasury to decide whether to extend the emergency lending programs beyond the end of the year. But in her view, “but in my view, if it were me, I would extend all of them,” Mester said. “The fact that they exist provides confidence to the markets.”
