transcript
transcript
Economy’s Path Forward Is ‘Extraordinarily Uncertain,’ Powell Says
Federal Reserve Chair Jerome H. Powell said a full recovery was unlikely until Americans felt safe to “re-engage in a broad range of activities.”
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The current economic downturn is the most severe in our lifetimes. It will take a while to get back to the levels of economic activity and employment that prevailed at the beginning of the year. And it will take continued support from both monetary and fiscal policy to achieve that. As we have emphasized throughout the pandemic, the path forward for the economy is extraordinarily uncertain, and will depend in large part on our success in keeping the virus in check. Indeed, we have seen some signs in recent weeks that the increase in virus cases and the renewed measures to control it are starting to weigh on economic activity. A full recovery is unlikely until people are confident that it’s safe to re-engage in a broad range of activities. The path forward will also depend on policy actions taken at all levels of government to provide relief, and to support the recovery for as long as needed. The Federal Reserve’s response to this crisis has been guided by our mandate to promote maximum employment and stable prices for the American people, along with our responsibilities to promote the stability of the financial system. We are committed to using our full range of tools to support the economy in this challenging time. We have held our policy rate near zero since mid-March, and have stated that we will keep it there until we are confident that the economy has weathered recent events, and is on track to achieve our maximum employment and price stability goals.
The chair of the Federal Reserve, Jerome H. Powell, reiterated at a news conference on Wednesday that the health of the economy will continue to be tied to the whether the coronavirus can be kept in check. He spoke after the central bank pledged to keep supporting the United States economy as the pandemic continues to depress economic growth and sideline millions of workers.
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“We’re not even thinking about thinking about thinking about raising rates.” The Federal Reserve left interest rates near zero on Wednesday, and Mr. Powell made clear officials plan to keep rates at rock-bottom for the foreseeable future.
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Mr. Powell said it was important that the Fed keep its programs in place “until we’re very confident that the turmoil from the pandemic and the economic fallout are behind us.”
The Fed said on Wednesday that it would also extend its programs meant to keep dollar funding readily available to foreign central…
Read More:Stocks Rise as Fed Reiterates Support for the Economy
