Fed’s Bullard: May see elevated savings rate until families view pandemic as truly over

The Federal Reserve should not even discuss changes in the policy while the US is still in the health care phase of the crisis, St. Louis Federal Reserve President James Bullard said on Thursday, per Reuters.

Additional takeaways

“Possible that the US is moving towards a period of higher productivity, businesses see eye-opening potential from remote technology.”

“We may see elevated savings rate until families view pandemic as truly over.”

“The Fed is facing a tricky communications challenge in an effort to lift inflation expectation.”

Market reaction

The greenback continues to have a difficult time finding demand after these comments. As of writing, the US Dollar Index was down 0.43% on the day at 92.02.