More economic support required says Federal Reserve

Additional and ongoing economic support will be required long into the future to shore up the economy in the wake of the global COVID-19 pandemic according to the president of the Cleveland Federal Reserve Bank, Loretta Mester.

Speaking yesterday (Tuesday) Mester shared that the economic recovery will likely be dependent on continuing support from both a fiscal and a monetary perspective – measures which undoubtedly support strong gold prices and bode well for the appeal of the precious metal as a safe haven asset.

Speaking at a European Economics and Financial Centre event, she said, “Both monetary and fiscal policy have supported the recovery in the U.S. thus far, and in my view, both will continue to be needed to limit lasting damage to the economy from the pandemic… consistent with our forward guidance, Federal Reserve policymakers stand prepared to respond appropriately to continue to foster a broad-based sustainable recovery.”

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