Saturday, May 31, 2025

Latest

Jerome Powell Suggests More Needs To Be Done By Congress To Pull Economy Out Of Downturn

Jerome Powell, the US Federal Reserve Chairman recently addressed the current coronavirus-induced economic downturn via a webcast event for the Peterson Institute for International Economics, stating that a lot more still needs to be done to put the country back on track.

In his statement on Wedneday, Powell suggested the drastic downfall of the US economy is most likely far from over, and that there is a lot more work to be done to keep the current recession from spiraling out of control. He acknowledged that the Fed’s near-zero interest rates and various liquidity and lending programs are helping a lot, in addition to the stimulus funding provided by congress, but the path to economic recovery is still looking grim and riddled with risks. He clarified that the Fed’s hands are becoming increasingly tied as negative interest rates are out of the question, so instead he is urging Congress to take the reigns to keep the economy from further collapse.

As a result of coronavirus lockdowns and soaring infection rates, the US economy has fallen into a slump not seen since the Great Depression of the 1930’s. The current unemployment rate is up to 14.7%, and all the previous decade’s job gains have been erased. Meanwhile, first quarter GDP levels shrank by 4.8%, with second quarter levels predicted to be even more grim.

Source: Trading Economics

Although the Fed has issued drastically low interest rates and Congress has passed almost $3 trillion worth of rescue funding as a means of mitigating the economic downturn, Powell said there is still a lot more work that needs to be done on the policy-maker side. Recently, House Democrats unveiled a second $3 trillion funding bill which is set for a vote on Friday, that includes a second round of the one-time $1,200 stimulus checks as well as more loans and tax breaks for “small businesses.” However, there is most likely going to be significant opposition from the Republicans – as always.

Information for this briefing was found via CNBC, Yahoo Finance, and Peterson Institute for International Economics. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Length of Average Work Week Lowest on Record According to Latest StatsCan Data

Statistics Canada has reported that the average work week for those paid by the hour...

Sunday, May 31, 2020, 01:43:00 PM

White House, Federal Reserve Insist Impending Inflation Spike will be Temporary

Despite a rapidly accelerating economic recovery, the Biden administration and the Federal Reserve continue to...

Tuesday, April 13, 2021, 10:35:00 AM

Federal Reserve’s Balance Sheet Hits Record High $7.04 Trillion

The Federal Reserve recently announced it has begun purchasing corporate bond exchange traded funds, and...

Friday, May 22, 2020, 08:20:41 AM

Canada’s Unemployment Rate Rises to 6.6% in August Amid Mixed Job Market

Canada’s unemployment rate climbed to 6.6% in August, marking the highest level since May 2017...

Friday, September 6, 2024, 11:00:59 AM

The Recession of 2022: GDP Dips 0.9%, Second Consecutive Quarterly Decline

Despite the Biden administration’s enduring efforts to change the definition of a recession and Jerome...

Thursday, July 28, 2022, 10:17:51 AM