Powell: “Significant Uncertainty” of economic recovery

Jerome Powell, Federal Reserve Chairman commented on sluggish U.S. economic recovery, and its significant impact on small businesses, lower income, and minority Americans on Tuesday at his semiannual testimony before Congress.

During his testimony, Powell told Congress that while some indicators have shown improvement, recovery was still far off, and that “The levels of output and employment remain far below their pre-pandemic levels, and significant uncertainty remains about the timing and strength of the recovery,” to the Senate Banking Committee.

Last Wednesday, U.S. officially announced recession. With the pandemic still underway, if there is not much help from the federal level then small business, lower-income, and minority Americans are at risk.

Powell stated, “if economy recovers too slowly, we lose more than just the business. This businesses are the heart of our economy and often embody the work of generations.”

Powell also said, ”Low-income households have experienced, by far, the sharpest drop in employment, while job losses of African Americans, Hispanics, and women have been greater than that of other group,” and “If not contained and reversed, the downturn could further widen gaps in economic well-being that the long expansion had made some progress in closing.”

Powell stressed previously Fed will deploy everything in its power to aid for recovery, but he didn’t mention exactly when and how.

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