Fed's Quarles: There has probably never been more uncertainty about economic outlook

"There has probably never been more uncertainty about economic outlook," Randal Quarles, Vice-Chair of the Federal Reserve, said on Friday.

Additional takeaways

"Stress test results will examine bank performance against three possible economic outcomes following the pandemic."

"Banks will be examined against V-shaped, U-shaped and W-shaped recoveries."

"Bank capital requirements will still be set by the original stress test scenario established before pandemic lockdowns."

"Additional sensitivity analyses created by the Fed to reflect pandemic will inform fed stance on capital distributions and in bank supervision."

"New analysis includes targeted adjustments to reflect changes in bank balance sheets and changes to variables like unemployment rate and GDP growth."

Market reaction

The US Dollar Index continued to edge higher after these comments and was last seen gaining 0.17% on the day at 97.62.