US economy

Mnuchin and Powell Go Head-to-Head on Economic Outlook

“The unemployment rate decreased to 6.9 percent, a rate not expected to be achieved until the fourth quarter of 2021. The historic bipartisan CARES Act provided the economic relief critical to supporting our robust economy. Additional economic shutdowns, however, continue to impair this remarkable progress, and cause great harm to American business and workers. Based upon the recent economic data, I continue to believe that a targeted fiscal package is the most appropriate federal response. I strongly encourage Congress to use the $455 billion in unused funds from the CARES Act to pass an additional bill with bipartisan support.” “The Fed’s response has been guided by our mandate to promote maximum employment and stable prices for the American people, along with our responsibilities to promote the stability of the financial system. We’ve been taking broad and forceful actions to more directly support the flow of credit in the economy. Our actions, taken together, have helped unlock almost $2 trillion of funding to support businesses, large and small, non-profits and state and local governments, since April This, in turn, has helped keep organizations from shuttering, and has put employers in a better position to keep workers on and to hire them back as the economy continues to recover. As we’ve 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. The rise in new Covid-19 cases, both here and abroad, is concerning and could prove challenging in the next few months. A full economic recovery is unlikely until people are confident that it’s safe to re-engage in a broad range of activities.”

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