COVID-19 resurgence poses challenges to economic recovery: U.S. Fed chief


WASHINGTON, Nov. 30 (Xinhua) -- U.S. Federal Reserve Chairman Jerome Powell said on Monday that the rise in COVID-19 cases, both at home and abroad, could pose challenges to the economic recovery in the next few months.

"As we have emphasized throughout the pandemic, the outlook for the economy is extraordinarily uncertain and will depend, in large part, on the success of efforts to keep the virus in check," Powell said in his prepared testimony, which was posted Monday on the Fed's website, for a congressional hearing scheduled on Tuesday.

"The rise in new COVID-19 cases, both here and abroad, is concerning and could prove challenging for the next few months. A full economic recovery is unlikely until people are confident that it is safe to reengage in a broad range of activities," Powell said.

While recent news on the vaccine front is very positive for the medium term, "significant challenges and uncertainties remain" for now, including timing, production and distribution, and efficacy across different groups, Powell noted.

"It remains difficult to assess the timing and scope of the economic implications of these developments with any degree of confidence," he said.

Powell also said that the overall rebound in household spending is partly due to federal stimulus payments and expanded unemployment benefits, which had expired and provided essential support to many families and individuals.

Powell's testimony came as Democratic and Republican lawmakers have been deadlocked for months over the size and scope of the next round of fiscal support.

"We are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible on behalf of communities, families, and businesses across the country," he said.

Fed officials may offer new guidance for asset purchases "fairly soon" as the central bank seeks to provide more support to the COVID-19 ravaged economy, according to the minutes of the Fed's latest policy meeting released last week.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In World

Australia made 'huge' mistake' cancelling submarine deal, says French ambassador
SpaceX capsule with world's first all-civilian orbital crew set for splashdown
Notre-Dame's restoration ready to start as safety work completed
Australian police clash with anti-lockdown protesters, arrest nearly 270
Yemen's Houthis execute nine men for involvement in Samad death
Kin of Philippines 'drug war victims' hope for justice as ICC approves probe
Japan PM candidates differ on same-sex, women rights issues
Woman in New Zealand charged with murdering her children after arriving from South Africa
Venezuelan leader Maduro lands in Mexico ahead of Latin American leaders' summit
Algeria's former President Bouteflika dies at 84

Stories You'll Enjoy


Vouchers