Fed Vice Chair Richard Clarida said the US economy is “really in an uncharted situation right now. My own sense is that we’ll begin to get a better sense of the scenario and the trajectory the economy is on in early fall.”
He added that Fed’s efforts helped ease financial conditions during the coronavirus pandemic. “While this easing of financial conditions is, of course, welcome, whether it proves to be durable will depend importantly on the course that the coronavirus contagion takes and the duration of the downturn that it causes,” he said. “At a minimum, the easing of financial conditions is buying some time until the economy can begin to recover.”
