Fed Chair Jerome Powell welcomed news of the rising likelihood of an effective coronavirus vaccine in a virtual European Central Bank forum, according to Reuters. However, he believes it is too soon to access with confidence the economic implications in the near-term.
- Even with the vaccine, the pandemic will have damaged the economy in the long-term, and more fiscal stimulus will be needed to return to normalcy.
- Although the unemployment rate may fall further, some workers may continue needing help to find jobs.
- Powell also reiterated that Fed is in the process of applying for membership to the Network for Greening the Financial System, the international central banking organization focused on climate change
U.S. stocks are currently gaining. SPY is up 0.79% on premarket, QQQ:NASDAQ is up 0.73% on premarket