A sober US Fed wants more fiscal spending as some states reopen
Chair Jerome Powell wants to spend now to avoid long-term economic damage, as Dr Fauci warns of new restrictions if coronavirus spikes again
13 May 2020 - 17:26
Washington — US Federal Reserve chair Jerome Powell, in a sober review of where the US economy stands on the cusp of its reopening, said on Wednesday that the country could face an “extended period” of weak growth and stagnant incomes, pledged to use more Fed power as needed, and issued a call for more fiscal spending.
For a central banker who spent part of his career as a deficit hawk and has tried to avoid giving advice to elected officials, the remarks marked an extraordinary nod to the risks the US economy is facing from the combined health and economic crisis brought on by the coronavirus pandemic...
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