6/23/2020, 7:17 PM (Source: TeleTrader)
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Pandemic wasn't as bad as expected - Fed's Bullard

St. Louis Federal Reserve President James Bullard said on Tuesday that at the basic level, the coronavirus pandemic didn't turn out to be "as bad as expected" and the market responded on that level. "Firms, households, they all have incentives to adapt to the new situation," Bullard explained.

Additionally, Bullard noted that there may be some businesses that will have to "close the door," but that he "doesn't see that will happen to the bulk economy." The adaptation to the new situation is the key, he said.

Providing an example of his claim, Bullard said that "the airline sector might become more of a luxury, meaning it will charge more and fly fewer flights." Following on that, he said that "the adaptation like that could change the size of the industry, but that what will happen is alternation and not the elimination of the product."

Breaking the News / TF