Powell Says Fed Remains Open to More QE/Longer Maturities

Q: Why with the short-term outlook deteriorating not the moment for a big new easing step? Is it because of the medium term outlook improving, or lack of Fed capacity to build that 'bridge'?

• A: This is a very very large asset purchase program, providing large amount of support to the economy. Interest rate-sensitive sectors doing well. We have the ability to buy more bonds or longer-term bonds and we may use that, not saying we won't, it may come to using it. But mon pol works with long and variable lags.
• Looks like a time when what's needed is fiscal policy, so a positive thing we're getting that. We remain open either to increasing size of purchases or moving to longer maturities to take duration out of the market. But we think our current stance is appropriate, and our guidance today will provide support.
• We don't think the economy is suffering from a lack of accommodative financial conditions, it's suffering from a pandemic. Nonetheless we are prepared to use are tools inasmuch has it would help.