If this isn’t Fed-speak for a politically induced depression I don’t know what is. Republican politicians & neoliberals in order to maintain the current economic order will risk a collapsing economy that would affect the middle-class and the poor to maintain the failed economic order.
Fed Chair Warns the Economy May Need More as Congress Hesitates – The New York Times
The Federal Reserve chair, Jerome H. Powell, delivered a stark warning on Wednesday that the United States was experiencing an economic hit “without modern precedent,” one that could permanently damage the economy if Congress and the White House did not provide sufficient financial support to prevent a wave of bankruptcies and prolonged joblessness.
Mr. Powell’s blunt diagnosis was the latest indication that the trillions of dollars that policymakers have already funneled into the economy may not be enough to forestall lasting damage from a virus that has already shuttered businesses and thrown more than 20 million people out of work.
Yet the warning comes as discussions of additional rescue measures have run aground, with Democrats proposing sweeping new programs and Republicans voicing concerns over the swelling federal budget deficit, which is projected to hit $3.7 trillion this year. President Trump and his economic advisers have pressed the pause button on negotiations for additional spending, waiting to see how much the economy rebounds as states begin lifting restrictions on business activity.
Mr. Powell lauded Congress for the more than $2 trillion relief effort it had already funded, but he made clear that a rebound could take months to materialize, requiring more support. …
While congressional Republicans are worried that the packages will significantly add to the federal deficit, Mr. Powell said this was not the moment to fret over government spending.
“Now, when we are facing the biggest shock that the economy has had in modern times, is, for me, not the time to prioritize considerations like that,” he said. That time will come “a few years down the road, when the economy is well and truly recovered, or at least mostly recovering.”
Source: Fed Chair Warns the Economy May Need More as Congress Hesitates – The New York Times
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