We’re Not “Writing Black Checks” – Jay Powell Claims “Nothing Fundamentally Wrong With Economy”

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We’re Not “Writing Black Checks” – Jay Powell Claims “Nothing Fundamentally Wrong With Economy”

Federal Reserve Chairman Jerome Powell was on NBC’s Today show on Thursday morning, explaining how the COVID-19 pandemic has thrown the US economy into an unprecedented situation.

Powell said the Fed still has room for monetary policy maneuverability, indicating “there can be a good rebound on the other side of this.”

“All over the world investors have pulled back to less risky things, but what that’s meant is many places in the capital markets … have just stopped working. We can step in and replace that lending under our emergency lending powers, and we will do that.” -Powell pic.twitter.com/ZIOyDWsVWq

— TODAY (@TODAYshow) March 26, 2020

He said: “There’s nothing fundamentally wrong with our economy, quite the contrary,” adding that, “We may well be in a recession.”

“This is a unique situation,” Powell said. “People are being asked to close their businesses and stay home from work. At a certain point, we will get the spread of the virus under control and confidence will return.”

“Do you think we are already in recession?” -@savannahguthrie

“We may well be in a recession. Again, I would point to the difference between this and a normal recession. There’s nothing fundamentally wrong with our economy.” -Federal Reserve Chairman Jerome Powell pic.twitter.com/x2HzV6pyJ9

— TODAY (@TODAYshow) March 26, 2020

Powell said he has been listening to health experts about when the virus would clear; he expects economic activity will resume in the second half of 2020.

“We are not experts in pandemic… We would tend to listen to the experts. Dr. Fauci said something like the virus is going to set the timetable, and that sounds right to me,” Powell said. “The first order of business will be to get the spread of the virus under control and then resume economic activity.”

“I think the first order of business will be to get the spread of the virus under control and then resume economic activity.” Federal Reserve Chairman Jerome Powell tells @savannahguthrie pic.twitter.com/7sXrNpLECv

— TODAY (@TODAYshow) March 26, 2020

“Can the economy handle a monthslong shutdown if that is what the public health emergency requires and demands?” @savannahguthrie asks Federal Reserve Chairman Jerome Powell pic.twitter.com/wSLWBQinv6

— TODAY (@TODAYshow) March 26, 2020

Powell …read more

Source:: Zerohedge.com

      

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