Powell Repeats: We Are Not Out of Ammo

Q: Re extending 13-3 lending programs:

- A: We think the facilities have served their purposes well... we're just in the process of turning to that question and of course have not made any decisions.... it's a decision we have to make and will make jointly with Treasury.

Q: Are we in a global liquidity trap, and what are the consequences of that? How do you follow the epidemiology, vis what the ECB has done - what can you learn about 2nd/3rd wave from Europe?

- A: Answer is no, we are not out of ammo, we are strongly committed to using our tools to support the economy, no one should have any doubt about that. I think there's more that can be done.

Fiscal policy is absolutely essential here. Stimulating aggregate demand is one thing, but in some parts of the economy you also need fiscal policy.

I didn't see ECB Pres Lagarde's comments this morning, but this wave of COVID is a concern. With widespread spike in cases across the country... "I do think that that's a risk we have as we go into the Fall now and the cases spike, one would expect it would weigh on econ activity... though we thought the same thing about the wave this summer in the South and West, and the economy "seemed to move right through that...this one seems to be larger and more widespread... it's a risk is what I would characterize it as"