Federal Reserve Chairman Jerome Powell warned of potentially tragic economic consequences if Congress and the White House don’t provide additional support to households and businesses disrupted by the coronavirus pandemic.
“The expansion is still far from complete,” Mr. Powell said in his strongest remarks to date on the subject, delivered to a virtual conference of private-sector economists Tuesday. “At this early stage, I would argue that the risks of policy intervention are still asymmetric. Too little support would lead to a weak recovery, creating unnecessary hardship.
By contrast, the risks of providing too generous relief are smaller, he said. “Even if policy actions ultimately prove to be greater than needed, they will not go to waste,” he said.
A few hours after Mr. Powell spoke, President Trump said he was suspending negotiations with congressional Democrats over steps to extend unemployment benefits that lapsed in July and to provide additional aid to hard-hit businesses, cities and states.
“The recovery will be stronger and move faster if monetary policy+fiscal policy continue 2 work side by side 2 provide support to the economy until it is clearly out of the woods,” #Fed Chairman Jerome Powell said" https://t.co/QBf23Fbdql #economy #stimulusbill #politics #covid19
— Kendall Harmon (@KendallHarmon6) October 7, 2020