NY Fed President John Williams in Q&A to the....>

FED: NY Fed President John Williams in Q&A to the Greater Rochester Chamber of

Commerce. Highlights:

* On how long interest rates will be low: "The economy has been hit by the worst

shock of our lifetimes. It's going to take a while for the economy to get back

to full strength."

* Negative rates: Rates are in a "supportive place" now. Says: "We have the

tools without going to negative rates, we're going to deploy those tools...I

just don't see negative rates, it's not really something that's needed right

now." 

* Growth: Expects to hit a trough "soon," then sees a rebound in H2. Says it

depends on the path of the virus. Says he sees multiple scenarios. Says it may

take "a few years" to get back to pre-Covid unemployment levels. 

* Inflation: Says actions to increase liquidity are not inflationary. If

anything, he says, "I see inflation running below trend."

* Fiscal: Says he doesn't think "the rise in deficits is a problem...I think we

can afford significantly more government support."