Weak Recovery Without Govt Aid

Federal Reserve Chair Jerome Powell warned of a weak U.S. recovery without sufficient government aid/stimulus and added that too much stimulus would not be a problem. So, it seems the back and forth bickering between democrats and republicans is more about politics than lending a hand to help the economy recover.

Powell’s remarks Tuesday came amid Republicans’ opposition to a larger relief package that’s kept talks with the Democrats at a stalemate. Powell also iterated “Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses.

The U.S. central bank has pledged to keep rates low until the economy returns to maximum employment and has been urging Congress to pass additional fiscal stimulus on top of the $3 Trillion already authorized. Lawmakers have been debating additional aid since the end of July, when the enhanced unemployment benefits that were authorized in March expired.

Powell also stated. “The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods.”