The market’s conductor spoke, and when it comes to the Federal Reserve, investors drop everything to hear what the chairman says. Speaking at virtual event at the Peterson Institute of International Economics on Wednesday, Jerome Powell again pushed for the Administration and Congress to open the spigots and spend more money in response to the coronavirus-induced economic downturn the U.S. and to help make sure the Fed’s stimulus is effective.

The extent of the damage became even more apparent a day later when the Labor Dept. said that nearly 3 million workers applied for unemployment benefits last week. The total is now more than 36 million.

“There is a growing sense that the recovery may come more slowly than we would like…and that may mean that it’s necessary for us to do more,” the Fed chairman said. He described the outlook “highly uncertain and subject to significant downside risks.”

The video in this report is only accessible to members
On the whole, I’d say the Fed message this week was less sanguine that the previous week’s speeches saying the economy might get out of the hole in the second half. “The scope and speed of this downturn are without modern precedent, significantly worse than any recession since World War II,” the Fed head said. He warned of long-lasting damage that could...

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