Fed's Kashkari: Recovery will be grinding and slow without more stimulus

BY Reuters | ECONOMIC | 10/15/20 05:46 PM EDT

Oct 15 (Reuters) - The U.S. economic recovery will slow down if unemployed Americans and struggling businesses do not receive more assistance, Minneapolis Federal Reserve President Neel Kashkari said on Thursday.

Thousands more businesses could fail if they do not get more support, Kashkari said during a virtual discussion organized by New York University Stern Center for Global Economy and Business.

The financial pain felt by jobless consumers who are struggling to pay their bills could also spill over to other parts of the economy, Kashkari said. (Reporting by Jonnelle Marte Editing by Chris Reese)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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