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The president of the Federal Reserve, Jerome PowellHe said Monday that the outlook is “extraordinarily uncertain” and will depend both on containing the virus and on government efforts to support the economic recovery.
Economic activity has picked up in recent weeks after what has been months of confinement in some parts to slow the spread of the coronavirus, Powell said in remarks prepared for a hearing in Congress on Tuesday.
“We have entered in an important new phase and we have done it earlier than expected ”, Powell said.
“While this rebound in economic activity is welcome, it also presents new challenges, notably the need to keep the virus under control,” added.
With output and employment still well below pre-crisis levels, the Fed chief said that “the future path for the economy is extremely uncertain and will largely depend on our success in containing the virus.”
He added again that a full recovery is unlikely until people trust that it is safe to be away from home.
The Fed cut interest rates to near zero, bought trillions of dollars in bonds, and launched nearly a dozen credit-backed programs to boost the economy and keep markets going.
The central bank has also promised to use the “Full range of tools” to support activity in the United States.
Congress has committed nearly $ 3 trillion in aid.
But more could be needed, Powell said, noting that the “Main Street” credit line – which has not yet been used – could be valuable “in the coming months” for companies hit by a dramatic drop in economic activity. during the pandemic.
Some states have begun delaying their opening as coronavirus infections increase.
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