Former Federal Reserve chiefs Janet Yellen and Ben Bernanke urged lawmakers Friday not to let a boost to unemployment benefits expire at the end of July and to spend generously while interest rates are low to power the U.S. through the coronavirus pandemic, The Hill reported. In testimony before the special House coronavirus subcommittee, they warned lawmakers that the U.S. could face deep, permanent economic damage without more than $1 trillion in further stimulus. Their appearance comes as congressional leaders begin formal negotiations over the size and scope of another pandemic response and economic rescue package. They said that the next congressional stimulus measure should focus on three areas: investing in the medical response to the pandemic, extending enhanced unemployment benefits, and giving local governments enough financial support to sustain crucial services amid steep revenue shortfalls. “We do not believe that concerns about the deficit and debt should prevent Congress from responding robustly to this emergency,” Yellen said. “The top priorities at this time should be protecting our citizens from the pandemic and pursuing a stronger and equitable economic recovery," she added. They have previously advocated for those positions with more than 150 fellow economists in a letter to congressional leaders last month. Their testimony also served as a more forceful, direct version of Fed Chairman Jerome Powell’s call for extended unemployment benefits and ample aid for state and local governments. But their Friday appearance before lawmakers, the first for each since they left the Fed, comes as the White House and Congress face a narrowing window to avoid a lapse in fiscal support.
