Fed’s Williams: Not concerned about the dollar losing it’s very important status

FX

“I’m not concerned about the dollar losing it’s very important status,” New York Federal Reserve President John Williams said on Tuesday, as reported by Reuters.

Additional takeaways

“Fed’s emergency facilities, with exception of the Main Street, are basically operating more of a backstop role.”

“The banking system came into this episode with very strong capital.”

“The Fed has gone to extra lengths to make sure stress testing is taking into account the effects of COVID.”

“Health, hospitality and travel are sectors are still struggling.”

“Commercial real estate is an area hit hard and with greater uncertainty right now.”

“We should keep interest rates appropriately low to achieve maximum employment and price stability goals.”

“Economy has been surprising us on the upside over the last several months.”

“My view is the economy is going to have a sustained recovery for the next couple of years.”

Market reaction

The US Dollar Index edged slightly lower and was last seen losing 0.42% on the day at 93.88.

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