The chairman of the Federal Reserve maintains that the pace of the US economy has moderated

The Chairman Of The Federal Reserve Maintains That The Pace Of The US Economy Has Moderated

Washington – Federal Reserve Chairman Jerome Powell said that the rate of improvement in the economy has moderated in recent months and future prospects remain “extraordinarily uncertain.”

In remarks released Monday by the Fed, Powell noted that the increase in new cases of COVID-19 both in the United States and abroad is “worrying and could constitute a challenge for the coming months.” A full economic recovery is unlikely until people are convinced that it is safe to resume a wide range of activities.

Powell said that while progress in vaccine development has been “very positive,” significant challenges remain over the timing, production and distribution of vaccines, and it remains difficult to assess the economic implications of this process with any degree of certainty.

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Powell’s remarks were prepared for his joint appearance Tuesday with Treasury Secretary Steven Mnuchin before the Senate Banking Committee.

The hearing is part of the commission’s oversight responsibilities outlined in the $ 2 trillion Coronavirus Aid, Assistance and Economic Security Act (CARES) initiative that Congress passed in March.

In Mnuchin’s prepared remarks, also released Monday, the Treasury secretary said the Trump administration remained willing to support a specific fiscal package with a view to providing additional financial assistance.

“I strongly urge Congress to use the $ 455 billion of unspent funds from the CARES Act to pass an additional initiative with bipartisan support,” said Mnuchin. “The government stands ready to support Congress in this effort to support workers and small businesses in the United States that continue to face difficulties due to the repercussions of COVID-19.”

Mnuchin announced on November 19 that it would not expand five loan programs operated jointly between the Fed and the Treasury Department that expire on December 31. Mnuchin noted that the resources allocated to the Fed for those programs should now be used to support Congress for additional assistance to individuals and businesses.

The five programs Mnuchin announced he would not expand beyond this year included corporate and municipal debt support and the purchase of loans for small businesses and nonprofits.

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