Please ensure Javascript is enabled for purposes of website accessibility
With Spending Already Falling, Virus Spike Threatens U.S. Economy, Says Fed Chief
gvw_ap_news
By Associated Press
Published 4 years ago on
November 17, 2020

Share

WASHINGTON — Federal Reserve Chair Jerome Powell said Tuesday that the nationwide surge in confirmed coronavirus could slow the economy in the months ahead by discouraging consumers from spending.

“We’re seeing states begin to impose some activity restrictions,” Powell said in an online discussion with the Bay Area Council, a San Francisco-based business group. “The concern is that people will lose confidence in efforts to control the pandemic, and … we’re seeing signs of that already.”

While Powell did not elaborate, the government reported earlier Tuesday that retail sales grew just 0.3% in October, the smallest gain since the pandemic sent sales plunging nearly 15% in April. A measure of consumer confidence has also declined this month.

And JPMorgan says that consumer spending fell earlier this month compared with mid-October, according to activity on 30 million of its credit and debit cards that it anonymously tracks.

Powell said the threat also means that Congress and the White House should provide more stimulus spending to support the unemployed, states and cities, and small businesses, and to keep the economy afloat. Powell has repeatedly called for more government spending as have many other Fed officials.

“There hasn’t been a bigger a need for it in a long, long time here,” he said.

He also warned that even when the economy fully recovers, likely after a vaccine is distributed, some industries will likely remain weaker than they were before the pandemic. That could force many of those still unemployed to find work at a new company or in an entirely different industry. Those transitions might also require government support, he said.

“We’re not going back to the same economy, we’re going back to a different economy,” he said. “That’s going to mean that those people who worked in the service industry, they may need help and support for a time as they find work in new places.”

DON'T MISS

Jeffrey Sachs Warns of Looming US War With Iran

DON'T MISS

Cat House on the Kings Urgently Needs You to Donate Dollars and Adopt Your New Best Friend

DON'T MISS

The Surprising Sexual Politics of Nicole Kidman’s Kinky ‘Babygirl’

DON'T MISS

Why It’s Hard to Control What Gets Taught in Public Schools

DON'T MISS

FDA Approves Weight-Loss Drug to Treat Obstructive Sleep Apnea

DON'T MISS

In a Calendar Rarity, Hanukkah Starts This Year on Christmas Day

DON'T MISS

A Look at the $100 Billion in Disaster Relief in the Government Spending Bill

DON'T MISS

It’s Eggnog Season. The Boozy Beverage Dates Back to Medieval England but Remains a Holiday Hit

DON'T MISS

9-Year-Old Among 5 Killed in Christmas Market Attack in Germany

DON'T MISS

Biden Signs Bill That Averts Government Shutdown, and Brings a Close to Days of Washington Upheaval

UP NEXT

A Look at the $100 Billion in Disaster Relief in the Government Spending Bill

UP NEXT

US Deportations Surge to Highest Level in a Decade Before Trump Takes Office

UP NEXT

White House Pushes to Find American Journalist Abducted in Syria

UP NEXT

Liberal Donors Plot to Overturn Republican House Majority in 2026

UP NEXT

The ‘Murder Hornet’ Has Been Eradicated From US, Officials Say

UP NEXT

Supreme Court Will Hear Arguments Over the Law That Could Ban TikTok

UP NEXT

Trump’s Picks for Top Health Jobs Not Just Team of Rivals but ‘Team of Opponents’

UP NEXT

Most US Teens Are Abstaining From Drinking, Smoking and Marijuana, Survey Says

UP NEXT

Mystery Drone Sightings Continue in New Jersey and Across the US. Here’s What We Know

UP NEXT

Drone Sightings Lead to Airspace Shutdown at Ohio Military Base, Arrests Near Boston Airport

Why It’s Hard to Control What Gets Taught in Public Schools

16 hours ago

FDA Approves Weight-Loss Drug to Treat Obstructive Sleep Apnea

17 hours ago

In a Calendar Rarity, Hanukkah Starts This Year on Christmas Day

17 hours ago

A Look at the $100 Billion in Disaster Relief in the Government Spending Bill

17 hours ago

It’s Eggnog Season. The Boozy Beverage Dates Back to Medieval England but Remains a Holiday Hit

17 hours ago

9-Year-Old Among 5 Killed in Christmas Market Attack in Germany

18 hours ago

Biden Signs Bill That Averts Government Shutdown, and Brings a Close to Days of Washington Upheaval

18 hours ago

This French Bulldog Is So Fetch: Meet Toaster Strudel

20 hours ago

The Fed Expects to Cut Rates More Slowly in 2025. What That Could Mean for Mortgages, Debt and More

22 hours ago

New California Voter ID Ban Puts Conservative Cities at Odds With State

23 hours ago

Jeffrey Sachs Warns of Looming US War With Iran

In a recent interview, renowned economist Jeffrey Sachs outlined his concerns about the possibility of war with Iran, framing it as the culm...

15 hours ago

15 hours ago

Jeffrey Sachs Warns of Looming US War With Iran

15 hours ago

Cat House on the Kings Urgently Needs You to Donate Dollars and Adopt Your New Best Friend

16 hours ago

The Surprising Sexual Politics of Nicole Kidman’s Kinky ‘Babygirl’

16 hours ago

Why It’s Hard to Control What Gets Taught in Public Schools

17 hours ago

FDA Approves Weight-Loss Drug to Treat Obstructive Sleep Apnea

17 hours ago

In a Calendar Rarity, Hanukkah Starts This Year on Christmas Day

17 hours ago

A Look at the $100 Billion in Disaster Relief in the Government Spending Bill

17 hours ago

It’s Eggnog Season. The Boozy Beverage Dates Back to Medieval England but Remains a Holiday Hit

Help continue the work that gets you the news that matters most.

Search

Send this to a friend