Fed's Bullard: Cannot continue economic shutdown for too long

The Federal Reserve's programs had a clear "announcement effect" on financial markets, noted St. Louis Federal Reserve President James Bullard on Tuesday. Commenting on the reopening of the economy, Bullard argued that they can't continue with economic shutdowns for too long.

"Shutdown policy could last perhaps 120 days without the rising risk of bankruptcies, broader financial problems," Bullard further explained. "The Fed has a good solution for foreign markets in a combination of swaps for some central banks, repo-style facility for others."

Bullard also said that the third quarter could see a record annualized pace of economic growth after a record contraction in the second quarter.

Market reaction

The US Dollar Index edged higher in the last minutes and was last seen down 0.55% on the day at 99.68.