Powell in Support of More Coronavirus Relief Bill to Save the US Economy

Federal Reserve Chairman Jerome Powell is noting his support for more relief funds while urging Congress to consider another substantial fiscal rescue package in order to salvage the United States economy.

In Powell’s speech on Wednesday, he discussed the scope and speed of the economic downturn, noting a multitude of problems businesses and American workers could face due to “an extended period of low productivity growth and stagnant incomes.”

“There is a growing sense that the recovery may come more slowly than we would like, but it will come. And that may mean that it’s necessary for us to do more,” Powell said.

Powell explained that the economic recovery process will likely need time to gain momentum but he’s urging Congress to deeply consider the trade-off of additional spending to avoid long-term economic damage that stifles recovery.

“The recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems,” Powell said.

See Powell’s full statement below:

While he admits another coronavirus relief bill would come with a high price tag, he says it may be worth the cost.

“Additional fiscal support could be costly, but worth it if it helps avoid long-term damage and leaves us with a stronger recovery,” he continued. “This trade-off is one for our elected representatives, who wield powers of taxation and spending.”

Powell went on to outline the possible long-term effect of financial disparity on the economy.

“We know that long periods of unemployment leave a shadow over the labor force and over our economy, over people’s lives en masse. We also know that waves of bankruptcies can weigh on economic activity for years,” he continued.

Powell’s statements come just one day after House Democrats unveiled a $3 trillion coronavirus stimulus package.

The proposed bill, which aims to provide funding for states, American workers, and expanded coronavirus testing, has been met with opposition from Republicans due to its staggering price tag, as previously reported on IJR.

However, House Speaker Nancy Pelosi (D-Calif.) has defended the proposed bill with a stance similar to Powell’s, noting the dire state of the economy is on the brink of collapse.

As states begin to reopen, the number of new coronavirus cases in the United States continues to rise, along with the death toll.

Responses

  1. Yeah let’s get the deficit up to 30 tril. Then 1 day Powell says let’s raise the rates. The taxes will increase and then smack dab in full blown recession. Jimmy Carter days will return.

    1. Taxes SHOULD be raised, on the wealthy and huge multi-national corporations. These groups have NOT been pulling their weight for DECADES! That places even more burden on the 40% working poor who can’t so easily bear it.

      If YOU can’t see that, then YOU are part of the problem.

  2. Again, it’s very important to reassure our more fortunate that not a penny of these welfare checks goes to the very poor. It should be obvious that there would be no way to send checks to people who lack home addresses and bank accounts, but this does need to be pointed out to today’s Americans.

  3. Let’s face facts johnny butt, ALL you democrap leeches want is to destroy our economy and America in order to grab all power and control of everything and everybody. You have no caring for people. You NEVER have you snake oil salesman. You only use people for your end game ass hole. You only have hatred for anything and anybody that disagrees with you and an unquenchable thirst for total power and control. You do not want to let a good crisis go to waste. You love your totalitarianism.

    1. That is odd. Perhaps you’re just reciting lines you picked up from TV? You cite a list of insults without indicating anything to support them. Who is taking control of whom, and how are they doing it? Who does/doesn’t care about whom/what? America itself has a culture driven by self-centered ambition, greed, and hate. Survival of the fittest! Empathy was rooted out of our culture years ago. Admit that you hate anyone who doesn’t march in lockstep behind you — anyone who could be an opponent. That’s just the American way.

  4. Because they are completely serving ass holes Rephucklicans will refuse to fund anything that does not benefit their entitled, rich, male, Caucasian trash, big business and major corporation owning donors far more than inconveniently necessary Little People such as workers, small businesses and state and local government employees.

    1. Let’s face facts johnny butt, ALL you democrap leeches want is to destroy our economy and America in order to grab all power and control of everything and everybody. You have no caring for people. You NEVER have you snake oil salesman. You only use people for your end game ass hole. You only have hatred for anything and anybody that disagrees with you and an unquenchable thirst for total power and control. You do not want to let a good crisis go to waste. You love your totalitarianism.

      1. He doesn’t have to destroy the economy Trump has done that. What Trump deserves is a ride on a caisson in his coffin.

    2. Rich Republicans? You mean like Buffett, Zukerberg and Silicon Valley. Thems some poor folks. Nancy, Schumer and Maxine are dirt poor. All the left are working for minimum wage and working 3 jobs. Johnny you are reciting the same crap I have heard since I left the military over 45 years ago.

      1. And you still use a picture of you in uniform? You know where they get Army green you take Navy blue and add a whole lot of yellow.

Comments are closed.