Tag: Jerome Powell

Fed’s Powell urges Congress to spend on unemployed in pandemic

Fiscal policy has more immediate effect, Fed chairman says

Federal Reserve Chairman Jerome Powell on Tuesday urged Congress to spend more money to limit the economic damage of the COVID-19 pandemic, the latest in a chorus of current and past Fed officials to tell lawmakers that inaction could lengthen the recession.

“There’s a reasonable probability that more will be needed both from you, and from the Fed,” Powell told the Senate Banking Committee, echoing nudges he has made in nearly every public statement since the pandemic began.

Powell has noted that COVID-19’s economic devastation has fallen hardest on low-income workers — 40 percent of individuals making under $40,000 lost their jobs during the crisis. Continue reading.

Fed Chair Warns the Economy May Need More as Congress Hesitates

New York Times logoJerome H. Powell pointed to potentially dire consequences if a lasting economic downturn is not averted with forceful policies

The Federal Reserve chair, Jerome H. Powell, delivered a stark warning on Wednesday that the United States was experiencing an economic hit “without modern precedent,” one that could permanently damage the economy if Congress and the White House did not provide sufficient financial support to prevent a wave of bankruptcies and prolonged joblessness.

Mr. Powell’s blunt diagnosis was the latest indication that the trillions of dollars that policymakers have already funneled into the economy may not be enough to forestall lasting damage from a virus that has already shuttered businesses and thrown more than 20 million people out of work.

Yet the warning comes as discussions of additional rescue measures have run aground, with Democrats proposing sweeping new programs and Republicans voicing concerns over the swelling federal budget deficit, which is projected to hit $3.7 trillion this year. President Trump and his economic advisers have pressed the pause button on negotiations for additional spending, waiting to see how much the economy rebounds as states begin lifting restrictions on business activity.

As Trump talks rebound, Fed’s Powell warns economy’s pain will last

The Fed chief’s comments suggest the U.S. economy could face a rocky path for at least the next year as it attempts to rebuild.

President Donald Trump is hoping the economy will bounce back rapidly from the coronavirus shutdown, but Federal Reserve Chair Jerome Powell warned Wednesday that it will take time for the country’s wounds to heal even after businesses begin to reopen.

After the Fed pledged to keep interest rates near zero until the economy has weathered the pandemic, Powell underscored the bleak reality, saying next week’s monthly jobs report is expected to show an unemployment rate somewhere in the double digits.

“We’re going to see economic data for the second quarter that’s worse than any data we’ve seen for the economy,” he said during a news conference. Continue reading.

Fed Chair Powell Isn’t The ‘Enemy’ — It’s Trump Himself

Jerome Powell is the bane of Donald Trump’s existence. Lately, it seems Trump would rather bash the Federal Reserve than eat his favorite fast food. Every other tweet from him accuses the central bank chairman of being a hopeless bungler.

On Friday, the president decided he had been far too mild in his criticism. “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?” he tweeted. This comes from someone who said of the Chinese leader in June, “I think we’re going to be strategic partners.”

Trump has grown increasingly frustrated that Powell will not do his bidding. The president asserted Wednesday, “The only problem we have is Jay Powell and the Fed.” Earlier in the week, he accused Powell of a “horrendous lack of vision.” A year ago, he was grousing about Powell for raising interest rates.

View the complete August 26 article by Steve Chapman on the National Memo website here.

Trump calls the Fed chair an ‘enemy’ after Powell said trade war is ‘turbulent’

Washington Post logoJACKSON HOLE, WYOMING. — President Trump escalated his unprecedented attacks against America’s central bank Friday, calling Federal Reserve Chair Jerome H. Powell an “enemy” of the United States that is as bad as China, a tweet that triggered a stock market slide and came minutes after Powell vowed to keep the economy growing.

Powell said Friday that the trade war is a “complex, turbulent” situation and that the central bank will “act as appropriate to sustain the expansion,” suggesting another interest rate cut may be coming but not the large decline that Trump has demanded.

“Our economy is in a favorable place,” Powell said, but he added that there are “significant risks” from slowing global growth and the U.S.-China trade fight. China just announced major new tariffs on U.S. products, the latest in an exchange of blows between the two nations that have caused numerous countries around the world to teeter on the verge of a recession.

View the complete August 23 article by Heather Long on The Washington Post website here.

The Federal Reserve chairman is in demand amid economic danger signs

The Fed chairman is stepping up the number of group meetings on his dance card, including with House Democrats

It must be nice to get your own personal report on the economy from the head of the world’s largest central bank.

Federal Reserve Chairman Jerome Powell met with roughly 70 House Republicans at the whip team meeting prior to Monday night votes, where, among other things, he talked about the Fed recently lowering its economic growth projections for 2019 and 2020.

While Powell frequently meets or calls individual members, such larger meetings appear to be rare, according to a review of his calendar.

View the complete March 27 article by Doug Sword on The Roll Call website here.