The U.S. economic recovery remains far from complete and could still slip into a downward spiral if the coronavirus is not effectively controlled and growth sustained, Federal Reserve Chair Jerome Powell warned on Tuesday in a call for more help to businesses and households.
“The expansion is still far from complete. At this early stage I would argue that the risks of policy intervention are still asymmetric. Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said in prepared remarks for delivery online to the National Association for Business Economics. “The risks of overdoing it seem, for now, to be smaller.
However members of Congress and the Trump administration remain stalemated over further direct federal government support for households, firms and local governments that many at the Fed and elsewhere feel is vital at this stage in the U.S. recovery. But despite some bright spots like a turn upward in business investment, Powell said the pace of improvement “has moderated,” with slower job growth and “notable” layoff announcements from large companies.
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