Fed's Daly: Fed is prepared to do whatever it takes within its powers

The Federal Reserve's policy actions are dependent on the evolution of the coronavirus, San Francisco Federal Reserve Bank President Mary Daly said on Tuesday and reiterated that the Fed is prepared to do whatever it takes within its powers.

"The virus will determine the magnitude and the duration of the downturn," Daly told Yahoo Finance and added that the economy could already be in a recession "with millions on furlough or losing their jobs."

"If we do the right thing to curb the spread of the virus, will be in the best position for the economy to rebound," Daly concluded. "Interest rates were set pre-crisis at the right level to put the economy on solid footing."

Market reaction

The US Dollar Index largely ignored these remarks and was last seen adding 0.4% on the day at 99.42.