Atlanta Fed's Bostic: Fed actions meant to show there will be maximum stimulus available now and when US gets “on the other side of this
Atlanta Fed's Bostic says Federal Reserve actions meant to show there will be maximum stimulus available now and when US gets "on the other side of this". Bostic says has not heard of companies making layoffs yet, but only contingency planning amid health crisis.
- Says larger businesses tell him they could weather a quarter's downturn.
- Says there was concern as of last week about market functioning.
- Said "continuous turmoil" in markets and across "policy space" last week convinced him the fed needed to act.
- Says second quarter is going to be "rough".
- Say feels recession can be avoided, with Q3 bounceback, if virus is contained.
- Says term auction facility among "next step" possibilities as fed continues deliberating crisis response.
- Says fed needs to consider and "be creative" about ways to aid small and medium sized businesses.