Fed's Clarida: Prospects for economy have brightened, downside risk has diminished

"Prospects for the economy in 2021 and beyond have brightened and the downside risk to the outlook has diminished," Federal Reserve's Vice Chairman Richard Clarida said in remarks prepared for delivery to the US Chamber of Commerce on Wednesday.

Key takeaways as summarized by Reuters

"COVID-19 infections in the United States, the spread of the coronavirus variants pose a downside risk to the very near-term outlook."

"It will take some time for the US economic activity, employment to return to pre-pandemic peaks."

"The Fed is committed to using full range of tools to support economy, make recovery robust and rapid."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen posting small daily gains at 90.21.