The U.S. economy is beginning to recover from the worst of the coronavirus crisis, but with some 25 million Americans displaced from work and the pandemic ongoing, it will need more help, Federal Reserve Chair Jerome Powell told lawmakers on Wednesday.
With the road back from recession likely to take some time, Powell said interest rates will likely need to stay near zero for “an extended period” and the U.S. central bank will continue to buy bonds to push down on longer-term borrowing costs.
But the Fed chief, who also testified before the Senate Banking Committee on Tuesday, noted that Congress must also do its part.
Referring to people whose jobs will be slow to return, such as those employed in the travel and restaurant sectors, Powell said it was “better to keep them in their apartment, better to keep them paying their bills.”
Source : Reuters