WASHINGTON (AP) – Federal Reserve Chairman Chair Jerome Powell reaffirmed on Friday that while the US economy is recovering well from the devastation caused by the recession, the recovery is far from over and needs continued support.
According to an opinion published in the Wallet Starl Journal, Powell describes the economy as very improved. Half of the 20 million jobs lost due to the epidemic have been restored, and forecasts are brightening as vaccines become more widely used.
Still he adds: “The recovery is not complete, so at the Fed we will continue to provide much-needed support to the economy as long as it lasts.”
Powell’s message reinforces the points he made at a news conference after the last meeting of the Fed on Wednesday. At the end of the meeting, the central bank’s political developers came up with updated forecasts, which drastically updated their forecasts արագ This year, the economy was expected to grow rapidly. At the same time, their conservative forecast showed that officials expect to keep their benchmark rate close to zero by 2023, despite concerns in the financial markets about higher possible inflation in the financial markets.
According to Powell, in February 2020, he, along with other federal officials, was behind the outbreak of COVID-19 in China, but did not think it would do much harm to the United States. But he says that during a meeting attended by finance officials from the Group’s 20 major industrialized countries, it became clear that the virus was spreading rapidly and widely.
“He left that meeting,” he wrote, “making sure that its impact would not be limited to distant lands, as I thought, but would reach all parts of the globe.”
One week later, in early March, the Fed held an emergency policy meeting on which Powell said: “How can we help people overcome a difficult time?”
He said officials had concluded that they had to act forcefully because “the risk to the US economy was great.”
The central bank continued to cut its key short-term interest rates to record lows, began to support long-term interest rates by buying billions of dollars in bonds, and created a number of emergency loans to support the financial system. ,
Even in the face of the Fed’s rapid response, Powell notes that “the further decline in speed, breadth and intensity was unprecedented.”
“The epidemic caused severe, unequal damage to life,” the Fed chairman wrote.
But he says. “I really believe that we will get out of this crisis stronger, better, as we did before.”