Federal Reserve Chairman Jerome Powell arrives at a news conference following the meeting of the Federal Open Market Committee in Washington on December 11, 2019.
Joshua Roberts | Reuters
Federal Reserve Chairman Jerome Powell reiterated his commitment to an “all-in” recovery approach, pledging in a commentary for The Wall Street Journal to keep politics free.
Noting the “much improved” economy, the head of the central bank said that US determination and aggressive policy have combined to make future prospects brighter.
“But the recovery is far from complete, so at the Fed we will continue to give the economy the support it needs for as long as it needs to,” he wrote in a published article. “I really believe that we will emerge from this crisis stronger and better, as we have done so often so far.”
Powell’s comments came two days after the Fed voted to keep benchmark short-term lending rates close to zero and to continue a program that involves buying at least $ 120 billion a month in bonds.
Along with these measures came the commitment of central bank officials not to change policy until the economy achieves full and inclusive gains in employment, even if this means that inflation may be hotter than the traditional 2% target. the Fed for a while.
Such an approach is essential to maintaining recovery, Powell said.
“The purpose of the crisis required a general government response,” he wrote. “Congress has provided the largest post-war economic recovery package. At the Fed, we have used all the tools at our disposal to prevent a financial crisis and to ensure that credit can continue to flow to households and businesses.”
Powell noted that the greatest impact of the Covid-19 crisis continues to fall on those least able to bear it, stressing the importance of an aggressive policy.
“Read Powell’s full comment.” Here.