WASHINGTON — The Federal Reserve pledged on Wednesday to keep its low interest rate policies in place even well after the economy has sustained a recovery from the viral pandemic. The Fed said in a statement after its latest policy meeting that the improvement in the economy and job market...
With Spending Already Falling, Virus Spike Threatens U.S. Economy, Says Fed Chief
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...
Powell and Mnuchin Voice Optimism but Back More Economic Aid
WASHINGTON — Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin expressed cautious optimism Tuesday that the U.S. economy is rebounding from the pandemic-induced recession with federal support but that more help from the government is likely needed. Powell told the House Financial Services Committee that he believed the...
Fed: Rates To Stay Ultra-Low Even After Inflation Picks up
WASHINGTON — The Federal Reserve announced a significant change Thursday in how it manages interest rates by saying it plans to keep rates near zero even after inflation has exceeded the Fed’s 2% target level. The change signifies that the Fed is prepared to tolerate a higher level of inflation...
Fed Sees Dim Economic Outlook as Virus Squeezes Economy
WASHINGTON — The Federal Reserve expressed concern Wednesday that the persistent viral outbreak will act as a drag on the economy and hiring in the coming months and said it plans to keep its benchmark short-term interest rate pegged near zero to help provide support. In a statement at the end of...
US Economy Facing Heightened Uncertainty, Says Fed Chief
WASHINGTON — Federal Reserve Chairman Jerome Powell says the outlook for the U.S. economy is “extraordinarily uncertain” and the success of the recovery effort will depend in large part on the country’s ability to contain the spread of the coronavirus. “A full recovery is unlikely until people are confident that...
Powell: A Stronger Job Market Is Key to Combating Inequality
WASHINGTON — Federal Reserve Chairman Jerome Powell stressed Wednesday that the federal government's role in strengthening the U.S. market in the face of a recession is vital in preventing a worsening of economic inequality. Powell said the the Fed would continue to deploy all its financial tools to help "get...
Powell Warns That Long Downturn Would Mean Severe Damage
WASHINGTON — Federal Reserve Chairman Jerome Powell warned Tuesday that the U.S. economy faces a deep downturn with “significant uncertainty” about the timing and strength of a recovery. He cautioned that the longer the recession lasts, the worse the damage that would be inflicted on the job market and businesses....
Powell Warns of a Possible Sustained Recession From Pandemic
WASHINGTON — Federal Reserve Chair Jerome Powell warned Wednesday of the threat of a prolonged recession resulting from the viral outbreak and urged Congress and the White House to act further to prevent long-lasting economic damage. The Fed and Congress have taken far-reaching steps to try to counter what is...
Fed’s Powell Sees Steady Growth, Signals Pause in Rate Cuts
WASHINGTON — Federal Reserve Chairman Jerome Powell indicated Wednesday that the Fed is likely to keep its benchmark short-term interest rate unchanged in the coming months, unless the economy shows signs of worsening. But for now, in testimony before a congressional panel, Powell expressed optimism about the prospects for the...