Fed's Evans: Monetary policy is in a second-chair role in current downturn

In the current economic downturn, the monetary policy is in a second-chair role, first responders are healthcare and fiscal authorities, Chicago Federal Reserve Bank President Charles Evans said on Thursday.

Additional takeaways

"Expiration of extra unemployment insurance leaves a big hole in aggregate demand."

"Expecting a much slower recovery if further fiscal aid is not forthcoming."

"Some businesses who need workers have had a hard time getting them due to a variety of reasons."

"If the vaccine is available this fall would expect faster growth next year, but would not expect boom as soon as the fourth quarter."

"Virus is a global phenomenon, the effect on trade, supply chain, decisions on where to build factories is uncertain."

"Fed's new average inflation targeting framework will be a good thing for the economy."

"Framework gives fed a little more latitude to shoot for above-2% inflation."

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its major rivals. As of writing, the US Dollar Index was up 0.16% on the day at 92.80.