Powell to tell Congress the Fed is committed to use all tools to fight the unprecedented downturn

spike

Federal Reserve Chairman Jerome Powell is reiterating his institution’s commitment to programs aimed at keeping markets functioning and getting money to those who need it during the coronavirus crisis.

In prepared remarks that Powell will deliver to the Senate Committee on Banking, Housing, and Urban Affairs, he outlines the myriad programs the Fed has developed during the pandemic.

“The Federal Reserve’s response to this extraordinary period has been guided by our mandate to promote maximum employment and stable prices for the American people, along with our responsibilities to promote stability of the financial system,” the statement says “We are committed to using our full range of tools to support the economy in this challenging time even as we recognize that these actions are only a part of a broader public-sector response.”

Since the implementation of social distancing measures to contain the coronavirus, the Fed, Congress and the Treasury have joined on a variety of programs to keep the economy afloat.

On the Fed’s side, most of those have taken the shape of lending facilities aimed at individuals, businesses and local and state governments. The Fed also cut its benchmark interest rate to near zero and is buying various forms of government debt to keep markets and the financial system functioning properly.

“The Federal Reserve has been entrusted with an important mission, and we have taken unprecedented steps in very rapid fashion over the past few months,” Powell said.

This is a developing story. Check back for updates.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Source Article

Next Post

More than 8% of U.S. mortgages now in forbearance: MBA weekly survey

FILE PHOTO: A home stands behind a real estate sign in a new development in York County, South Carolina, U.S., February 29, 2020. REUTERS/Lucas Jackson WASHINGTON (Reuters) – Roughly 4.1 million U.S. mortgage borrowers have had their payments paused or reduced as the novel coronavirus outbreak hits household finances, but […]