In a speech, Fed Governor Lael Brainard said that “given my baseline outlook, I expect that the current pace of purchases will remain appropriate for quite some time.” The outlook is “highly uncertain” and forecasts are “subject to revisions. The forward guidance is, thus, “outcome based and tied to realized progress on our goals.”
Looking ahead, “effective vaccines and additional fiscal support are important positive developments”. However, “the near-term outlook is challenging due to the resurgence of the pandemic, and the economy remains far from our goals.”
In particular, “the damage from COVID-19 is concentrated among already challenged groups”, she added. “The K-shaped recovery remains highly uneven, with certain sectors and groups experiencing substantial hardship.”
