Fed’s Kashkari: Thousands more businesses will fail if they don't get more support

Minneapolis Federal Reserve President Neel Kashkari recently crossed wires, via Reuters, while repeated the general Fed tunes pushing for fiscal stimulus, the absence to which can dampen economic sentiment.

The Fed board member cited fears of heavy losses by the businesses, leading them to close in thousands if they don’t get more support.

While giving another reason to break the stimulus deadlock, the Fed policymaker said, “Without more fiscal stimulus there will be a grinding slow recovery.”

FX implications

Although the early Asian session on Friday fails to react to the news, it magnifies the market disappointment over the US coronavirus (COVID-19) aid package stalemate. Recently, US House Speaker Nancy Pelosi renewed hopes of the much-awaited stimulus by saying that the “relief will not wait until January''. Even so, Wall Street closed in red and the risk dwindles amid broad pessimism.

Read: Wall Street Close: Bears in control as uncertainty prevails