US Likely Needs More Fiscal Stimulus To Cope With COVID-19 Crisis - Powell

WASHINGTON (UrduPoint News / Sputnik - 23rd September, 2020) The United States needs another round of fiscal stimulus to cope with the novel coronavirus pandemic as economic uncertainties remain overwhelming, Federal Reserve Chairman Jay Powell said in a congressional hearing on Tuesday.

"The economy is recovering and that's a good thing but it is very hard to have any certainty about the path forward. I think it is likely that more fiscal support will be needed," Powell said when asked about the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Congress has so far passed four phases of the CARES Act that have approved roughly $3 trillion to disburse as loans and grants to businesses, paycheck protection for workers and personal aid to qualifying US citizens and residents.

Both Republicans and Democrats, have blamed the other for the drag over the fifth installment, which has become more of a political issue ahead of the November 3 presidential and general election.

In his pre-testimony speech, Powell said US economic indicators such as employment, housing and fixed investments have improved markedly since the novel coronavirus outbreak in March, but more work was needed to restore the economy. Powell also said the Federal Reserve would do whatever it is necessary to support the nation through the crisis, by making its own loans to businesses and purchasing bonds and other assets.