As Economic Recovery Slows, Fed Pledges Full Support

Enlarge this image

U.S. Federal Reserve Chairman Jerome Powell has said the Fed is ready to support the economy as a recovery falters.

Andrew Caballero-Reynolds/AFP via Getty Images

hide caption

toggle caption

Andrew Caballero-Reynolds/AFP via Getty Images

Politics
Senate GOP COVID-19 Relief Bill Fails; Chances Of Bipartisan Deal Before Election Dim

With millions of people still out of work, Fed Chairman Jerome Powell has said additional government spending will likely be needed to support families and businesses until the economy more fully recovers.

The central bank itself has pumped trillions of dollars into the financial system to keep credit markets functioning properly. But its novel lending effort to support mid-sized businesses has gained little traction.

The Fed stressed once again that a sustainable recovery is unlikely until the nation is able to get control of the pandemic. New coronavirus infections and deaths have declined since mid-summer, but remain high compared to most other countries.

Economy
Fed’s Jerome Powell: Jobless Rate Better Than Expected; Recovery To Take A Long Time

This week’s meeting of the Fed’s rate-setting committee is the first since the central bank adopted last month a major new policy that could keep interest rates very low for years.

The Fed said at the time that it was adopting its new strategy in order to allow more people a chance to find work. The new approach would involve allowing the economy to run hotter by tolerating inflation above its 2% target as long as the average rate remained around that level.

• industrial production
• US economy
• Jerome Powell
• consumer spending
• Federal Reserve