Federal Reserve Chairman Jerome Powell told the Senate Banking Committee on Tuesday that the economic recovery "remains uneven and far from complete," and the job of the Fed to support it will not be finished until the pandemic is under control.
"Once we get this pandemic under control, we could be getting through this much more quickly than we had feared. … It's not done yet. The job is not done. … That's the thing I keep coming back to. We've got to get the pandemic under control so the U.S. economy can reopen," Powell said.
In the meantime, the Federal Reserve will continue to purchase $120 billion in Treasuries and mortgage-backed securities every month and maintain near-zero short-term interest rates, according to Powell. He said the Fed will "clearly communicate" any changes in its assessment of the economic progress "well in advance of any change in the pace of purchases."
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Bernice Napach
Bernice Napach is a senior writer at ThinkAdvisor covering financial markets and asset managers, robo-advisors, college planning and retirement issues. She has worked at Yahoo Finance, Bloomberg TV, CNBC, Reuters, Investor's Business Daily and The Bond Buyer and has written articles for The New York Times, TheStreet.com, The Star-Ledger, The Record, Variety and Worth magazine. Bernice has a Bachelor of Science in Social Welfare from SUNY at Stony Brook.
