Dow raises 430 points when Brainard urges the Fed to switch to stimulus as the “thick fog of uncertainty” surrounds the coronavirus-hit economy

Benchmarks for US stocks boosted gains Tuesday afternoon after Federal Reserve Governor Lael Brainard painted a bleak outlook for the economy facing the COVID-19 pandemic, but said he advocated a policy that stimulates the business sector hit by the virus. Brainard said that Fed policy should do more to boost the economy and said he advocated keeping current interest rates, currently in a range of 0% to 0.25%, until inflation returns to the central bank’s 2% target. . Brainard, speaking online, said “fiscal and monetary support will continue to be vital” to the economic rebound. The Dow Jones Industrial Average DJIA,
+ 1.78%
The S&P 500 SPX index rose 430 points, or 1.6%, to 26,511,
+ 0.83%
It rose 0.9% to 3,183, while the Nasdaq COMP Composite Index,
+ 0.19%,
which had been under pressure throughout the session, rose 0.4% to 10,439. “The recent resurgence in COVID cases is a serious reminder that the pandemic remains the key driver of the course of the economy,” he said. “We are still surrounded by a thick fog of uncertainty and downside risks predominate.” Brainard is seen as a moderate or complacent member of the Fed’s Federal Open Market Committee. As the Fed’s governor, she maintains voting status.