- Fed's Chair Powell: We should continue to do what we can to manage downside risks to the outlook
Market news
6 October 2020
Fed's Chair Powell: We should continue to do what we can to manage downside risks to the outlook
- Says Fiscal and monetary policy actions have supported strong but incomplete recovery
- There is still a long way to go in recovery
- Outlook remains highly uncertain, expansion far from complete
- Unemployment rate using broader measure of conditions is around 11%
- Sees risk that rapid initial gains transition to longer-than-expected slog to full recovery
- One risk is a resurgence in the virus; another is that slowing improvement could trigger typical recessionary dynamics
- Too-little policy support would lead to weak recovery; risks of overdoing policy support seem smaller
- Recovery will be stronger, faster if fiscal, monetary policy work side by side until the economy is clearly out of the woods
- Even if policy actions prove greater than needed they will not go to waste
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