Fed Chair Jerome Powell spoke at the Peterson Institute for International Economics in Washington, D.C., and suggested more fiscal support from Congress will be needed to pull the country out of its current economic downturn. During the speech, billed only as “Current Economic Issues,” Powell described the central concerns of America’s Recovery Fund Coalition (ARFC). To wit:
“The record shows that deeper and longer recessions can leave behind lasting damage to the productive capacity of the economy. Avoidable household and business insolvencies can weigh on growth for years to come. Long stretches of unemployment can damage or end workers’ careers as their skills lose value and professional networks dry up, and leave families in greater debt. The loss of thousands of small- and medium-sized businesses across the country would destroy the life’s work and family legacy of many business and community leaders and limit the strength of the recovery when it comes.”
ARFC agrees with Powell’s assertion that “We ought to do what we can to avoid these outcomes, and that may require additional policy measures.” America’s Recovery Fund – a grant-based program that will provide struggling businesses with the liquidity they need to weather this pandemic – would help avoid the prolonged economic pain described by Powell.