Fed Chairman Jerome Powell warned of potential economic disasters for the United States
The US economy will recover faster and stronger if government spending support extends to a clear time out of the recession, Mr. Jerome Powell said.
|Fed Chairman Jerome Powell. Photo: Reuters|
Speaking at an economic seminar held online on October 6, Powell warned of potential catastrophic economic consequences if Congress and the White House failed to reach consensus on the payment package. and benefits for individuals, households and businesses damaged by the Covid-19 pandemic.
“There’s still a long way to go before the recovery cycle is complete. At this early stage, I would like to preserve the view that the risks of policy intervention remain asymmetric. Too little support will lead to weak recovery and unnecessary economic turmoil … On the contrary, policy actions aimed at building a generous bailout package, larger than necessary, will not at all. waste, ”said Jerome Powell.
The Fed cut interest rates to near zero in March, bought a record large amount of government bonds and supported direct loan channel to businesses, cities and states to maintain. operate the market.
Meanwhile, talks between Democrats and Republicans on the extension of the unemployment support package, which expires in July, as well as the additional financing package for businesses have been stuck for months. In the latest development, US President Donald Trump on October 6 announced the suspension of talks with Democrats on a new bailout bill coming after the presidential election on Tuesday. 11 coming.