Federal Reserve governor Lael Brainard said the U.S. economy faces "considerable uncertainty" in the months ahead and called for continued support from both the central bank and fiscal policymakers to help the country recover from the coronavirus pandemic.

"Fiscal support will remain essential to sustaining many families and businesses," Brainard said Tuesday during a virtual event hosted by the Brookings Institution, adding the timing and size of that support was a "key factor" in the outlook. "In coming months, it will be important for monetary policy to pivot from stabilization to accommodation."

U.S. central bankers have debated increasing the amount of support their policy provides the economy, and whether they should reinforce their guidance on how long interest rates will stay near zero, minutes of their July meeting show. They next meet September 15 to 16, but that is probably too soon to upgrade their statement, said Julia Coronado, president of MacroPolicy Perspectives LLC.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.