US Federal Reserve (FED) President Jerome Powell stated that the increase in new types of coronavirus (Covid-19) cases is a concern for the economic recovery, and stated that the economy needs financial and monetary support.
US Federal Reserve (FED) President Jerome Powell explained that the increase in Covid-19 cases poses a significant risk to the economy at an event attended by video conferencing method.
Pointing out that states in the US have started to implement some restrictions, Powell said, “The situation that causes concern here is that people will lose confidence in their efforts to contain the pandemic and withdraw from activities they think may put them at risk of infection, and some signs of this are already seen.”
Powell stated that news about the Covid-19 vaccine is good in the medium term, but significant difficulties and uncertainties continue in the near term.
‘There is a long way to go’
Stating that the recovery is not complete and there is a ‘long way to go’, Powell emphasized that the economy will continue to need support from both fiscal and monetary policy.
Reiterating the Fed’s commitment to use all its tools as long as needed to support recovery, Powell noted that the economy needs more financial support.
Describing the increase in the number of Kovid-19 cases as very worrisome, Powell pointed out that this situation can scare people from being involved in economic activity and slow the economy.
Stating that it is too early to terminate the programs implemented by the bank against the economic effects of the epidemic, Powell said, “When the right time comes, I do not think that this time is too soon, we will put these tools aside.”