Fed’s Kaplan says economy could shrink again as virus surges By Reuters

© Reuters. FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks during an interview in his office at the bank's headquarters in Dallas

© Reuters. FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks during an interview in his office at the bank’s headquarters in Dallas

(Reuters) – Dallas Federal Reserve Bank President Robert Kaplan on Thursday said the economy’s rebound could stall in the next two quarters, with output possibly shrinking in the fourth quarter, because of the resurgence of the coronavirus.
The Fed is buying $120 billion of bonds each month and should continue doing so, he said, and potentially extend the maturities of its purchases if needed, he said. In addition, he said, it’s “critical” the Fed keeps its emergency lending programs going into next year. They are currently scheduled to expire on Dec. 31.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link