Fed's Mester: Fed stands ready to foster a broad-based sustainable recovery

The US Federal Reserve's policymakers stand prepared to respond appropriately to foster a broad-based sustainable recovery, Cleveland Fed President Loretta Mester said on Tuesday, as reported by Reuters.

Additional takeaways

"Both monetary and fiscal policy will continue to be needed to limit lasting damage to the economy."

"There is a high degree of uncertainty around the economic outlook."

"Some of the worst-case scenarios and downside risks have lessened over time."

"Monetary policy will not need to change so long as the medium-run economic outlook remains intact."

Resiliency shown by economy suggests the possibility that post-vaccination recovery could be stronger than expected."

Market reaction

The US Dollar Index edged slightly lower in the last hour and was last seen losing 0.15% on the day at 90.32.