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12/1/2020, 6:20 PM (Source: TeleTrader)
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Fed's Brainard: Fiscal support essential for recovery

Federal Reserve Governor Lael Brainard said on Tuesday that further fiscal support is "essential" in order to overcome the coronavirus crisis despite pledges from the Fed to continue using its full range of tools to support the economy.

"The Federal Reserve is committed to providing sustained accommodation through its forward rate guidance and continued asset purchases to achieve our maximum employment and 2 percent average inflation goals," Brainard said in her speech at the Chicago Community Trust.

"In parallel, additional fiscal support is essential to bridge past COVID's second wave in order to avoid labor market scarring, reductions in crucial state and local services, and bankruptcies. Such additional support is critical to turn this K-shaped recovery into a broad-based and inclusive recovery that is stronger overall," she concluded.

Breaking the News / JC