Fed's Kaplan: Will take more than just a vaccine to revive depressed industries

Dallas Federal Reserve President Robert Kaplan said on Thursday that he expects the US economy to end the year "2.5% smaller" than last year, as reported by Reuters.

Additional takeaways

"We have not seen a downward spiral in consumer spending because of early, sizable fiscal relief."

"If we don't get an extension of fiscal relief, consumer spending could weaken."

"Recession has hit some sectors and some groups of people worse than others."

"It will take more than just a vaccine to revive depressed industries."

"Depressed industries including energy should improve in 2022, 2023."

"Fossil fuels will be a big part of energy needs for the US, world, for decades to come."

"It might be good to ease requirements on the Main Street Lending program, but that's not the Fed's decision."

"We need to do what we can in this crisis to avoid permanent scarring."

"Number one economic policy, more than fiscal or monetary policy, is mask-wearing."

"After the pandemic, the US will need to mitigate debt growth."

"If there is no fiscal stimulus, mask-wearing, following health protocols will be even more important."

Market reaction

The US Dollar Index largely ignored these comments and was last seen flat on the day at 93.60.