Powell Says Economy May Be in Recession, Virus Will Dictate Timetable

Date : 26/03/2020 @ 12:09
Source : Dow Jones News

Powell Says Economy May Be in Recession, Virus Will Dictate Timetable

By Nick Timiraos 

Federal Reserve Chairman Jerome Powell said the U.S. economy "may well be in a recession," but that the central bank is taking unprecedented action to help ensure economic activity can resume as soon as the coronavirus pandemic is under control.

"The virus is going to dictate the timetable here," Mr. Powell said in a rare television interview, on NBC's "Today" show Thursday morning.

Mr. Powell said the Fed's job now is to make sure businesses of all sizes can have a "bridge" of support, including through emergency lending programs the Fed has been rolling out, so that the economy can recover faster.

"When it comes to this lending, we're not going to run out of ammunition. That doesn't happen," Mr. Powell said.

The Fed has slashed its benchmark rate to zero and unveiled a series of programs to boost lending. By Friday, it will have also purchased nearly $1 trillion in Treasury and mortgage securities over the past two weeks.

The Trump administration and Congress agreed Wednesday to provide $454 billion in additional funds for the Treasury to bulk up existing or new Fed lending facilities, including programs to support small-business lending and shore up financing markets for state and local governments.

Fed officials are trying to prevent firms from losing access to funding, which could then snowball, turning what is shaping up to be a severe, synchronized global recession into a full-bore depression.

 

(END) Dow Jones Newswires

March 26, 2020 07:54 ET (11:54 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
$
ADVFN Advertorial
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20200328 10:04:45