Practice English Speaking&Listening with: Stimulus package would help a faster than expected economic recovery: FOMC

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MESSAGE IS PRETTY CLEAR, FOLK,

THEY THINK MORE STIMULUS IS

NEEDED AND THEY THINK IT IS NEED

THE RIGHT NOW.

LETS GO TO EDWARD LAWRENCE TO

BREAK IT ALL DOWN.

REPORTER: CHARLES, A LOT OF

SKULKS ABOUT THIS.

THIS IS FROM THE SEPTEMBER

MEETING.

THEY TALK ABOUT THE FORECAST.

IN THE FORECAST FROM ALL

PARTICIPANTS FACTORED IN FISCAL

STIMULUS IN THE SECOND HALF OF

THE YEAR.

DUE TO THE HEIGHTENED

UNCERTAINTY THAT FISCAL STIMULUS

WAS IMPORTANT.

THEY SAID A NEW PACKAGE OR

GOING, WOULD HELP A FASTER THAN

EXPECTED RECOVERY.

SO A NEW FISCAL PACKAGE WOULD

HELP BOOST THE RECOVERY TOWARDS

THE END OF THE YEAR.

THE PARTICIPANTS SAY SUPPORTIVE

MONETARY POLICY, THAT THEY HAVE

CURRENTLY AND THE BACKSTOPS THAT

ARE AVAILABLE WOULD HELP IF

THERE IS NO FISCAL STIMULUS

COMING BUT THEY DID SAY THAT

RECOVERY WOULD BE WEAKER THAN

EXPECTED IF THERE IS NO MORE

FISCAL STIMULUS.

THEY DO ALSO SAY THAT THE, THEY

OBSERVE THE INCOMING DATA AS OF

NOW BECAUSE THE OF THE CARES ACT

SPECIFICALLY WAS FASTER THAN

EXPECTED, THE BOUNCEBACK, FASTER

THAN ALMOST ALL THE PARTICIPANTS

EXPECTED COMING BACK UP.

BUT AGAIN THAT IS BECAUSE OF THE

FISCAL BOOST WHICH IS WHY

THEYRE SAYING WE NEED IT IN THE

SECOND HALF OF THE YEAR.

THIS MEETING TALKED ABOUT THE

NEW FRAMEWORK FOR THE FEDERAL

RESERVE.

THE BIG SHIFT, TALKING ABOUT AN

AVERAGE OF 2% TARGET, ALLOWING

THE ECONOMY TO RUN A LITTLE BIT

HOT.

A SHIFT IN THE MAXIMUM

EMPLOYMENT, THE THINKING OF

MAXIMUM EMPLOYMENT, TALKING

ABOUT THE FED POSSIBLY NOT

HITTING A MILESTONE WHEN IT GETS

TO WHERE IT THINKS UNEMPLOYMENT

BOTTOMED OUT THEY WILL START

RAISING RATES, ALLOWING THE

ECONOMY TO RUN HOT.

ALL PARTICIPANTS AGREE THE

FRAMEWORK REVIEW WAS APPROPRIATE

TO GO FORWARD.

A LOT OF DISCUSSION HERE ABOUT

FORWARD GUIDANCE AND EXTENDING

FORWARD GUIDANCE.

MOST PARTICIPANTS SAID EXPLICIT

FORWARD GUIDANCE BASED ON THE

FEDERAL FUNDS RATE AND WHEN IT

SHOULD BE RAISED SHOULD BE A

CRITERIA FOR LIFTING THE FEDERAL

FUNDS RATE SHOULD BE IN THE FOMC

STATEMENT.

A COUPLE OF PARTICIPANTS SAYING

EVEN MORE STRONGER LANGUAGE

SHOULD BE IN THERE.

LESS QUALIFIED, OUTCOME-BASED

FORWARD GUIDANCE.

THEY SHOULD BE JUDGED MORE

CLEARLY, MAYBE SPECIALTY INSIDE

OF THE FOMC STATEMENT.

SO A LOT OF DISCUSSION ABOUT HOW

DETAILED THE FORWARD GUIDANCE

SHOULD BE BUT AGAIN THE BOTTOM

LINE IN THIS REPORTERS THEY

BELIEVE FISCAL STIMULUS IS

NEEDED.

The Description of Stimulus package would help a faster than expected economic recovery: FOMC