In the US, FED Chairman Jerome Powell made a gloomy assessment of the country’s economy on the eve of its opening.
On Wednesday, he said that the country could face a “long period” of weak growth and stagnation of income, but promised that the central bank would take even more decisive measures calling for increased spending from the budget.
Mr. Powell’s comments highlight the dangers facing the US economy, given his career as a banker, who has repeatedly emphasized the need to reduce the budget deficit and has consistently avoided advice for elected officials.
The US response so far has been “especially quick and powerful,” Mr. Powell said during an online broadcast.
“But it may take some time to recover until the proper momentum is achieved,” and this will be dictated by the progress that will be made in the fight against pandemics, he said.
The longer these risks persist, Mr. Powell added, the greater the likelihood that enterprises will go bankrupt and families face a shortage of income in this situation.
According to him, a recent study by the Federal Reserve shows that 40% of low-income families with less than $ 40,000 a year include at least one person who has lost his job since February.
In the worst case, Mr. Powell said, the economy can stagnate for “a long period of low productivity and stagnation of income … Additional financial support can be expensive, but it is worth it if it helps to avoid economic damage.” in the long run and gives a strong revival. “
His comments are seen as a direct appeal to Congress to add a new $ 3 trillion aid package that has already been approved.
“It is up to us to decide which of our elected representatives is who exercises the power of taxes and expenditures,” Mr. Powell said.
The House of Representatives and the Senate are considering further action in response to the crisis. White House officials said they want to evaluate how the initial round of economic discovery works before deciding what to do.