Fed's Barkin: Forward guidance will be powerful as economy comes back

The Federal Reserve's forward guidance will be "particularly powerful" as the economy comes back, Richmond Federal Reserve President Thomas Barkin said on Wednesday, as reported by Reuters.

Additional takeaways

"Real challenge now is getting the last 5% of unemployed workers back into jobs."

"Banks still seem pretty healthy."

"Fed decisions on banks buybacks and dividends should be on a bank-by-bank basis."

"Not seeing excessive leverage in the economy yet."

"Inequality driven by 30-40 year trends, worried that lower-income workers displaced during the current crisis will be hard-pressed to find their next job."

Market reaction

The US Dollar Index largely ignored these comments and was last seen gaining 0.15% on the day at 94.02.