Federal Reserve will continue to support the US economy without defining mechanisms.
The Federal Reserve remains committed to using all the tools at its disposal to help the US economy recover from the blow of the coronavirus pandemic, Central Bank Chairman Jerome Powell said Monday.
“We remain committed to using our tools to do what we can, for as long as necessary, to ensure that the recovery will be as robust as possible, and to limit lasting damage to the economy,” Powell said in comments released before the first. of the three days of hearings in Congress this week.
Powell’s first appearance will be Tuesday before the House Financial Services Commission.
Powell’s remarks about a “marked improvement” in the economic outlook largely echo what he said last week after the Fed’s last monetary policy meeting, where the body promised to keep interest rates close to zero until the The economy reaches full employment and inflation is on track to modestly exceed the 2% target.
The real estate sector has recovered, consumer spending has rebounded strongly, and about half of the 22 million jobs lost in the crisis have already been filled, Powell said.
“However, both employment and overall economic activity remain well below their pre-pandemic levels, and the way forward remains highly uncertain,” he said.
Powell’s speech included an update on the Fed’s Main Street loan program, which has now financed or is in the pipeline 230 loans totaling about $ 2 billion.
“The demand for Main Street loans may increase over time if the pandemic continues to affect the ability of businesses and nonprofits to access credit through normal channels and when other support programs expire,” he added.