The Federal Reserve chairman, Jerome Powell, beat the drums for more coronavirus (COVID-19) aid in Congressional testimony last week. Additionally, admonitions came aplenty. The $3 trillion Congress has already spent is not enough, the Fed head said. Of course, what all this new debt might mean for your grandchildren’s taxes was not discussed.

He warned the House Financial Services Committee that recent economic gains were at risk if Congress pulled back too quickly on aid for workers and businesses struggling due to COVID-19. That spending appears to have boosted hiring and consumer spending in recent weeks, Mr. Powell said, but ‘it would be wise to look at ways to continue to support people who are out of work and also smaller businesses.” Some 25 million American workers are currently unemployed.

The chairman reiterated the Fed would keep rates near zero at least through 2022 and that the unemployment rate would average around 9%-10% during the last three months of this year. If COVID-19 remains “reasonably well under control,” Powell expects the economy could already be moving toward a recovery marked by large increases in re-employment. Still, in the final phase, Americans must get comfortable again in activities involving close contact or large crowds. “U...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free