Fed Governor Lael Brainard said in a speech that while employment and activity “rebounded faster and more sharply than anticipated”, ” recent resurgence in COVID cases is a sober reminder that the pandemic remains the key driver of the economy’s course”.
A “thick fog of uncertainty” is still surrounding the US and “downside risks predominate. She added, “the recovery is likely to face headwinds even if the downside risks do not materialize, and a second wave would magnify that challenge.”
The uncertainty is “calling for a sustained commitment to accommodation, along with additional fiscal support.”
