Federal Reserve chairman Jerome Powell is urging Congress to complement his policies with a massive fiscal package.
In a statement Wednesday, Powell said America’s central bank will hold interest rates at near zero for several months. He argued this will encourage investment spending and help kick-start American businesses after a weeks-long economic shutdown.
However, the Federal Reserve chairman said Congress must provide additional funding to businesses to make the Fed response more efficient. The official noted that while the Fed is helping restore economic activity, increased fiscal intervention from Congress could boost hiring and job creation.
“This was the best labor market they’d seen in their lifetime…all the data supported that as well…and it is heartbreaking, frankly, to see that all threatened now,” he stated. “All the more need for our urgent response and also that of Congress, which has been urgent and large, to do what we can to avoid longer run damage to the economy.”
Fed Chair Powell: "Overall, economic activity will likely drop at an unprecedented rate in the second quarter."
— CSPAN (@cspan) April 29, 2020
Powell also said America’s GDP may post an unprecedented drop this quarter, but will rebound swiftly towards the year-end.
Author: OAN Newsroom