Federal Reserve Chairman Jerome Powell said the economic response to the coronavirus alleviated the fallout from the pandemic-induced recession but suggested Congress would likely need to spend more money to shore up parts of the economy that continue to struggle, the Wall Street Journal reported. “Our economy will recover fully from this difficult period,” Powell said in prepared remarks posted yesterday that are set for delivery at a congressional hearing today. The Fed will “do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible, and to limit lasting damage to the economy.” Powell begins three days of hearings on Capitol Hill today, beginning with the House Financial Services Committee, where he will testify alongside Treasury Secretary Steven Mnuchin. Both men will also appear before the Senate Banking Committee on Thursday. Powell testifies tomorrow before a separate House panel overseeing the U.S. response to the coronavirus pandemic. Powell said that the economy had rebounded in recent months following the end of lockdowns imposed to slow the spread of the virus, and that gains in household spending likely reflected federal stimulus efforts that included expanded unemployment benefits. Powell has said the government will need to do more to support hard-hit businesses, state and local governments, as well as unemployed workers in those sectors to prevent deeper scars from slowing any rebound. Read more. (Subscription required.)
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