“As we have emphasized throughout the pandemic, the outlook for the economy is unusually uncertain and much depends on the success of efforts to control the virus.” Powell Said in prepared comments
For his testimony Tuesday to the U.S. Senate Committee on Banking, Housing, and Urban Affairs. “The rise of new Kovid-19 cases here and abroad is relevant and could prove challenging in the next few months. Full economic recovery is unlikely as long as people believe it is safe to re-engage in a wide range.
Powell’s comments echo his remarks Earlier this month
. During a virtual panel discussion on central banking at the European Central Bank Forum, Powell stressed the recovery of the economy, but noted that the economy we knew before the coronavirus epidemic was over.
The recent news of vaccines is that Powell has been “very positive” for the medium term, although he expects “significant challenges and uncertainties, including time, production and distribution, and efficiency across different groups.”
“It is very difficult to predict with any confidence the timing and scope of the financial implications of these developments,” he said.
Meanwhile, many of the Fed-appointed programs in March will end later this year. Powell said the programs would help “unlock nearly tr 2 trillion of funds.”
“These programs serve as a backstop to key credit markets and have helped restore credit flow from private lenders through simple means. We have deployed these credit powers at an unprecedented rate,” Powell said in his comments.
Treasury Secretary Steve Munuchin testifying with Powell this week in a letter dated November 19 Grant a 90-day extension of those four programs
“Very carefully.” However, Munuchin did not grant extensions to five other loan programs, such as the Corporate Borrowing Program and the Main Street Loan Program.
Powell reiterated the Fed’s stance on using its policies to help lift the financial burdens that the pandemic begins. Keeping interest rates at zero and buying property purchases
Treasury securities are currently $ 80 billion and $ 40 billion a month are agency mortgage-backed securities.