Fed's Williams: Uncertainty around economy not nearly as extreme as in spring

The uncertainty around the pandemic and the economy are not nearly as extreme as they were in spring, New York Federal Reserve President John Williams said on Tuesday, as reported by Reuters.

Additional takeaways

"Right now financial conditions are quite favorable."

"Given continued uncertainty about the pandemic and concerns for stress to rise again, asset purchases help market functioning."

"Goal of the asset purchase program is also to lower long term interest rates."

"Dominant role of asset purchases is not to provide sustained support to the economy."

"Based on how we see the economy evolving, we can adopt and optimize programs."

"What we're focused on is how to have our policy best positioned to support a strong economic recovery and 2% inflation."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen losing 0.18% on the day at 92.33.