Fed Reserve Chair Powell Downplays Inflation Threat - ‘We Don’t Really See That’

Cornelia Mascio
Marzo 27, 2020

Federal Reserve Chairman Jerome Powell mentioned the central bank will care for its muscular efforts to toughen the drift of credit score in the us financial system as Americans hunker down from the coronavirus pandemic.

Federal Reserve Chairman Jerome Powell gave a rare exclusive interview with the "TODAY" show Thursday.

"When it comes to lending, we are not going to run out of ammunition".

Asked about President Trump's contention that the measures could end by Easter, so that churches could be packed and the economy could begin recovering, the Federal Reserve chair said the course of the virus should determine when restrictive measures should be eased.

He also said that there was "nothing fundamentally wrong" with the underlying US economy and argued that confidence would return when the spread of the novel coronavirus was under control. The Fed's policies will likely have their greatest impact when the economy does start to rebound, which he said could happen in the second half. "The virus is going to dictate the timetable here". "People are being asked to close their business, to stay home from work, and not engage in certain economic activity, and so they are pulling back".

Powell also explained the reasoning behind the feds' move to slash interest rates and buy securities to shore up the financial markets.

He was speaking after the US Senate had approved a $2trn economic relief package overnight that included $456bn for the Treasury to backstop ten times that amount in emergency actions by the Fed in markets for corporate as well as short-term state and local government debt.

President Donald Trump has been critical of Powell and the Fed in the past.

"We may well be in a recession", he acknowledged, while saying there's nothing fundamentally wrong with the economy and that it performed well through February.

"My colleagues and I here are totally focused on our mission of serving the American people", he said.

'Wherever. credit is not flowing, we have the ability in these unique circumstances to temporarily step in and provide those loans and we will keep doing that, aggressively and forthrightly, ' Powell said.

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