Fed's Bullard: Financial stability not a key concern in midst of pandemic

The Federal Reserve's current pace of asset purchases has been effective and the monetary policy is in a very good place, St. Louis Federal Reserve President James Bullard said on Friday, as reported by Reuters.

Additional takeaways

"Even if the Fed's emergency programs are shut down at the end of year markets would know they can be reopened, trust the Fed's willingness to act as a backstop."

"Investment will pick up substantially as vaccine nears, the probability rises pandemic will end."

"The Fed is still not thinking about thinking about raising interest rates, still a long climb for the economy."

"Financial stability is not a key concern in midst of the pandemic."

Market reaction

The US Dollar Index edged slightly lower and was last seen losing 0.18% on a daily basis at 92.78.