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Fed has lots of 'dry powder,' Kaplan tells Bloomberg Radio

Published 06/16/2020, 07:10 PM
Updated 06/16/2020, 07:10 PM
© Reuters. Dallas Federal Reserve Bank President Robert Kaplan speaks at the Commonwealth Club in San Francisco

SAN FRANCISCO (Reuters) - The U.S. Federal Reserve, which has cut interest rates to zero, is buying bonds to keep financial conditions easy and has opened up a raft of lending programs to backstop large parts of the economy, has plenty of capacity to do more, Dallas Federal Reserve Bank President Robert Kaplan said on Tuesday,

"We have the ability to do additional asset purchases. We've got plenty of dry powder," Kaplan said in an interview with Bloomberg Radio. Kaplan said he expects the U.S. economy to shrink by about 4.5% this year and for unemployment to end 2020 at around 8%. Whether the data actually is better or worse than his forecast, he said, will depend people's use of masks, testing, and contact tracing.

Latest comments

The Fed hasnt put all the announced progtams into action as of yet. They announced the measures in such a rapid fire way even out firm thought they werent goin to wait to see if an individual program worked first
I will guarantee everyone also that you just created a generation of investors who will only lose money through their life. Because this madness is coming to a close. It’s been 2008 to 2020. It’s like having a bubble blowing up with 100 Band-Aids on it. And one pop so if you try to put another one back on like whack a mole. That’s with this market is
It’s the.com bubble times 10 adding 87 and Ed in 2008 and that’s what this freefall is. We have a state run communist stock market right now. It’s so ridiculous and out of control that you need to mature adults to stop it. If everyone thought March was crazy that drop wait to you see what’s coming. And very soon
tons of dry powder when the FED is using an unlimited money monetary system lol. the question is, how long will the banks and friends buy stocks into this vertical move. once they stop, get ready for another retail slaughterhouse
Why should I work? Infinite money, no need to pay taxes...
Lot's of dry powder being paid for with our children's taxes.
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