Fed's Clarida says there is more the Fed can and will do

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Fed's Clarida says there is more the Fed can and will do
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With the surge in coronavirus cases threatening the U.S. recovery, Federal Reserve Vice Chairman Richard Clarida had a message on Tuesday: the U.S. central bank is not going to sit idly, even if a double dip recession is not the base case scenario.

“We have a lot of accommodation in place; there’s more that we can do, there’s more that we will do,” Clarida told CNN International. And while evidence of an economic rebound in May and June was “very welcome,” the Fed is following the course of the virus closely as it will determine the course of the economy, he said.

There is “no limit” on how many bonds the U.S. central bank can buy, he said, adding the Fed could ease policy further with forward guidance and keep its lending backstops in place as long as needed.

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