Federal Reserve Chairman Colin Powell: committed to using all tools to ensure a strong economic recovery

SMM: federal Reserve Chairman Colin Powell said at a press conference after the interest rate resolution on Wednesday that the Fed aims to ensure a strong economic recovery and reduce economic damage.

The Federal Open Market Committee ((FOMC)) left its benchmark interest rate unchanged near zero on Wednesday and again vowed to use all tools to support the shaky recovery of the US economy.

On the economy, Powell said that the current economic downturn is very severe. The US GDP contraction in the second quarter is likely to be the largest on record, the economic development path is unusually uncertain, and the economic path depends on the level of government action. Powell said that seeing signs that the growth of COVID-19 cases is putting pressure on the economy, the surge in cases means that the United States has entered a new stage.

Powell also reiterated that the Fed is committed to using all tools and believes that the Fed's policy position is appropriate and can be adjusted as needed.

Powell said the epidemic has a significant impact on inflation, and higher food prices may increase the burden.

Powell also said that maintaining the flow of credit is crucial to economic recovery. The lending program boosted the expansion of private credit, reiterating that the Fed can only lend and not allocate funds. The US economy needs fiscal and monetary support to recover, and both parties need additional fiscal support.

He says the Fed aims to create an environment in which people can work. Many people will need continuous support after losing their jobs, and many people in the entertainment and leisure industry will not return to work. Even if the economy restarts smoothly and people return to work, it will take a long time for the economy to recover.

Powell also said that FOMC discussed the adjustment of long-term goals in the statement and planned to end the framework review that would be postponed due to the epidemic.

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