Fed's Clarida says further monetary and fiscal stimulus will be needed
By Alexander Bueso
Date: Wednesday 14 Oct 2020
(Sharecast News) - The recent economic recession in the US will go down on record as its harshest, but likely also its briefest, a top Federal Reserve official said.
In remarks prepared for a conference at the International Institute of Finance, the central bank's vice-president, Richard Clarida, said the flow of economic data since May had been "surprisingly strong".
Economists' projections were for the economy to rebound at an annualised pace of 31.9% over the three months to June, albeit after a 31.4% drop over the second quarter.
Yet while the recovery in most sectors had been "broad based" the outlook was unusually uncertain, Clarida said.
Indeed, there was talk among economists of the risk of a so-called second dip recession.
On that note, Clarida added that further assistance for the economy, both from the Fed itself and from Congress, would be needed.
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