No results matched your search
EconomySep 21, 2020 04:58PM ET
By Yasin Ebrahim
Investing.com – Federal Reserve Chairman Jerome Powell is expected to acknowledge that economic activity has improved, but reiterate the Federal Reserve’s committed to maintain loose monetary policy measures as the outlook remains uncertain,. according to prepared remarks of his Congressional testimony slated for Tuesday.
“Economic activity has picked up from its depressed second-quarter level, when much of the economy was shut down to stem the spread of the virus. Many economic indicators show marked improvement,” Powell is expected to tell the Committee on Financial Services in the U.S. House of Representatives.
“Since mid-March, we have taken forceful action, implementing a policy of near-zero rates, increasing asset holdings, and standing up 13 emergency lending facilities.”
Powell will also acknowledge the rebound in the economy since the pandemic struck in March, but continue to suggest the Fed “remains committed to using our full range of tools to support the economy for as long as is needed.’
“In the labor market, roughly half of the 22 million payroll jobs that were lost in March and April have been regained as people return to work. Both employment and overall economic activity, however, remain well below their pre-pandemic levels, and the path ahead continues to be highly uncertain.
The Fed chief will continue to call on Congress to roll out fiscal support to maintain the current pace of the recovery.
Many borrowers will benefit from [the Fed’s] programs, as will the overall economy, but for others, a loan that could be difficult to repay might not be the answer. In these cases, direct fiscal support may be needed,” prepared remarks from Powell’s testimony said.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.