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. Even if policy actions ultimately prove to be greater than needed they will not go to waste. The recovery will be stronger and move faster.”
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Powell did not mention any further Fed programs beyond the roughly dozen rolled out in the spring, many still largely untapped and putting potentially trillions of dollars at the disposal of firms and credit markets.