Three of the world’s top central bankers predicted the breakthrough on a coronavirus vaccine would lift the uncertainty weighing on the global economy, while calling for more short-term public support to bridge the gap to a recovery.
Jay Powell, chair of the US Federal Reserve, said this week’s vaccine breakthrough was “certainly good and welcome news for the medium term”. But he warned that “significant challenges and uncertainties remain” on its timing, production, distribution and efficacy.
“From our standpoint it’s just too soon to assess with any confidence the implications of the news for the path of the economy,” Mr Powell said at the ECB’s annual forum on central banking, which is being held online for the first time this year.