In a recent interview with NPR, Federal Reserve (Fed) Chairman Powell stated that while there are some signs the economy is recovering from the pandemic, he expects the recovery to “get harder from here” and that we won’t know the actual pace of recovery “with any clarity for a couple more months.” During the interview, Chairman Powell made reassurances that the Fed would keep interest rates at near-zero for as long as the economy needs it. However, he also noted that there are tools outside of the Fed’s toolbelt that need to be utilized to maximize economic recovery. The first thing Powell advocated for was for Congress to increase COVID relief spending. Powell, who has previously warned of rising debt, noted that more spending would help limit the severity of the economic downturn and lead to more hiring and revenues. He commented that while this increased spending “would cost money now, it will pay dividends later.” Chairman Powell also urged people to wear masks and social distance. He noted that if people wore masks, there would be “enormous economic gains to be had nationwide.”

Click here to read more.