Federal Reserve Chair Jerome Powell stressed the importance of keeping the coronavirus contagion contained as the U.S. economy bounces back from its deepest contraction in decades.
”We have entered an important new phase and have done so sooner than expected,” Powell said in remarks prepared for testimony before the House Financial Services Committee on Tuesday with U.S. Treasury Secretary Steven Mnuchin. “While this bounceback in economic activity is welcome, it also presents new challenges—notably, the need to keep the virus in check.”
The Fed released the text of his remarks on Monday afternoon.
The Fed and Treasury have worked together to launch nine emergency lending programs aimed at providing backstop credit to everything from municipalities to medium-sized businesses. Those actions helped lower borrowing costs and keep the financial system liquid in a time of stress.
38,845 in U.S.Most new cases today
-10% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.101 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-2.3% Global GDP Tracker (annualized), May