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Ellen and Powell say more is needed to limit US economic losses

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WASHINGTON (AP) – Treasury Secretary Ethan Yellen նախագահ Federal Reserve Chairman ome Jerome Powell told Congress on Tuesday that more needed to be done to limit the economic damage of the coronavirus epidemic.

Powell reiterated that he did not expect programs aimed at boosting the economy to lead to unwanted inflation.

Both officials made rude remarks about the US economic outlook in their speeches before the House Financial Services Committee on Tuesday. They said that while there were encouraging signs of return, government support could continue to ensure that millions of people who lost their jobs could return to the job market.

Several Republican lawmakers have expressed concern that more than $ 4 trillion in congressional assistance last year could drive inflation, with the Biden administration recently approving a $ 1.9 trillion bailout package coupled with extremely low FD interest rates.

Addressing those concerns, Powell said Feder remains committed to his two political goals of achieving maximum employment and stable prices, which he interprets as an average annual price increase of 2%.

As progress has been made against the virus, the economy is opening up, and the Fed expects inflation to rise this year.

“Our best view is that the impact on inflation will not be particularly large or stable,” Powell said. And, as he has done in the past, he said that if inflation began to rise in worrying ways, the federation would have the tools needed to keep interest rates under control.

Republican lawmakers pressed Ellen over information that the administration was preparing a $ 3 trillion Build a Better spending plan to improve infrastructure, education, and job training. The event will be partially funded by tax increases for wealthy corporations.

Yellen said the administration is considering raising the corporate tax rate from the current 21% to 28%. It was reduced from 35% in the Trump administration under the 2017 tax bill.

“We have had a global race towards corporate taxation, and we hope to end it,” Yellen said.

Rep-Barry Loudermilk, R-Ga., Citing critics’ comments that the administration’s aid package was more than six times larger than it should have been. Yellen said the country had lost 9.5 million jobs, and if the frustrated workers were counted, the unemployment rate would now be more than 9%.

“We have a huge problem of inaction that needs to be addressed,” Yellen said.

Tuesday’s hearing marked Powell-Yellen’s first joint appearance in their current job – it was Yellen’s first speech to Congress since taking office as Treasury Secretary.

Yellen said the $ 1.9 trillion US bailout plans to return the country to full employment next year.

“By adopting a rescue plan, I am confident that people will get to the other side of this epidemic without breaking the foundations of their lives,” Yellen said.

The economy plunged deep into recession a year ago, with an initial loss of 22 million jobs, many of them in service sectors such as restaurants and retail stores.

Powell acknowledged that the recovery was nearing completion.

The FAD “will not forget the millions of Americans who are still hurting, including low-wage service workers, African Americans, Hispanics, and especially other minority groups who have been particularly hard hit,” Powell said.

At its meeting last week, the Fed maintained its benchmark interest rate from 0% to 0.25%, although it significantly boosted its economic outlook, it continued to signal that the benchmark interest rate will remain unchanged until 2023.

Under the March 2020 COVID-19 Assistance Act, the Minister of Finance նախագահը the President of the Fed Federation is required to report to Congress on a quarterly basis to provide updates. Powell և Yellen will appear before the Senate Banking Committee on Wednesday.

On Tuesday, Yellen promised to provide immediate assistance to the treasury on a new aid program. He noted that in the first week after the law came into force, the Treasury և IRS distributed more than 90 million direct payments, which provide $ 1,400 to qualified individuals.

Yellen said that since taking office two months ago, she has focused on helping aid quickly reach areas of greatest need, such as “the smallest small business that is disproportionately owned by women of color.”

Yellen noted that the Paycheck defense program created by last year’s legislation often does not reach the smallest business. He said the Treasury was working with the Small Business Administration to “tweak” how the program was implemented so that loans the government forgives if businesses did not lay off their employees could reach millions more micro-businesses, especially in rural areas. received areas.

The new aid package will also provide more than $ 30 billion to help evicted tenants and landlords, Yellen said. He said the Trump administration has set rules that require tenants and landlords to provide large amounts of paperwork for rent assistance, documents that the Biden administration is cutting back on.

“We are cutting their bureaucracy, while at the same time taking reasonable steps to prevent fraud and abuse,” Yellen said.

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