“We won’t run out of money,” may be the most important takeaway from Federal Reserve Chair Jerome Powell’s remarks via a Wednesday after the meeting of the Federal Open Market Committee.
And the US central bank may need to deploy a lot of it, as policymakers see the coronavirus crisis weighing heavily on the in the near term and posing “ to the economic outlook over the medium term,” which Powell describes as the next year or so. In response to a question, Powell enumerated these risks as the course of the virus itself, the amount of damage done to the economy, and the global extent of that impact.
As Much As It Takes, As Long As It Takes
The Fed for one is willing to throw as much money at the crisis as necessary, and Powell feels fiscal authorities should pull out all the stops, too. He described himself as a fiscal conservative who urged consolidation of public debt even before coming to the Fed, but, he said, “now is not the time to act on these…