Weighing the bleak short-term outlook and the brighter long-term picture has complicated the Fed’s policymaking as it assesses how much more stimulus to pursue. At his news conference, Fed chair Jerome Powell acknowledged that challenge. Buying more 10-year Treasurys, for example, lowers their yield, and the 10-year yield influences mortgage rates and other borrowing costs. But the Fed may prefer to keep that step in reserve in the event that the economy significantly worsens next year. “Climate change is an emerging risk to financial institutions, the financial system and the economy,” Powell said.

Source: The Standard December 17, 2020 03:21 UTC