Federal Reserve Chairman Jerome Powell has ruled out negative interest rates—which Trump wants—and expects unemployment to peak next month
he expects a gradual recovery of the economy, with unemployment likely reaching its peak in the next month, while seeming to rule out lowering interest rates into negative territory—an idea endorsed by President Trump....
The economic toll has taken an outsized toll on lower-income households, Powell said, with 40% of those employed in February and living in a household that makes less than $40,000 a year losing their job in March. Powell endorsed the idea of additional fiscal support coming from Congress, rather than the Fed changing monetary policy, saying additional spending from the federal government at the expense of racking up more debt is “costly, but worth it” for the time being.
Though he said unemployment may “decline sharply” once the economy starts to recover, Powell warned that a full pre-coronavirus recovery will likely be a slow one, with forecasts recently getting slower.“There is a sense — a growing sense, I think — that the recovery will come slower than we would like, but it will come,” he said.
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