By | Rachel Brooks
Staff | Telegraph Local
Fed Chief Jerome Powell addresses the United States in March, 2020. Created by Federal Reserve. Public Domain.
The Dow Jones futures jumped by 225 points ahead of the statement by Federal Reserve Chief Powell. This was reported by Investor’s Business Daily. The Dow Jones climbed along with the S&P 500 and other Nasdaq futures after the surge in the stock market on Tuesday. The stock market surged as President Trump proposed a $1 trillion infrastructure package.
President Trump has not yet commented on the surge in the stock market via his Twitter handle.
Despite the impressive surge in the stock market, Fed Chief Jerome Powell is unconvinced that a recession recovery is soon to come. Mr. Powell’s comments regarding the recession were reported by The Hill at 10:22am EDT on June 16.
“Recently, some indicators have pointed to a stabilization, and in some areas a modest rebound, in economic activity. With an easing of restrictions on mobility and commerce and the extension of federal loans and grants, some businesses are opening up, while stimulus checks and unemployment benefits are supporting household incomes and spending,”said Powell before the Senate Banking Committee on Tuesday, as he was quoted by The Hill.
Mr. Powell also highlighted the reasons why recession recovery is not highly likely at this stage.
“That said, the levels of output and employment remain far below their pre-pandemic levels, and significant uncertainty remains about the timing and strength of the recovery. Until the public is confident that the disease is contained, a full recovery is unlikely,” said Powell, as he was further quoted by The Hill.
Federal Chief Powell has warned frequently that the unprecedented degree of economic downturn caused by COVID-19 would make for a difficult recovery.
“Even after the unexpectedly positive May employment report, nearly 20 million jobs have been lost on net since February, and the reported unemployment rate has risen about 10 percentage points, to 13.3 percent. “The burden of the downturn has not fallen equally on all Americans. Instead, those least able to withstand the downturn have been affected most,” he continued. “Low-income households have experienced, by far, the sharpest drop in employment, while job losses of African Americans, Hispanics, and women have been greater than that of other groups,” said Powell on Tuesday, as he was further quoted by The Hill.
Bloomberg Canada reported at 1:54pm on June 17 that Powell is consistently urging Congress not to withdraw federal aid to businesses too quickly.
Mr. Trump has not yet commented on Powell’s urgency. Mr. Trump’s opposition Democratic presidential candidate Joe Biden has voiced his opinions this week regarding the continuation of coronavirus-related federal assistance.
“After reports of wealthy Trump donors getting millions in relief meant for small businesses, the administration is now refusing to disclose where the PPP money went. It’s unacceptable.
The American people deserve answers,” said Biden in a tweet that posted at 7:01pm one June 14.
While Treasury Secretary Steve Mnuchin has himself not directly commented on Jerome Powell’s recent address, he had made a note of more careful oversight of the PPP Loan programs.
“I will be having discussions with the Senate @SmallBizCmte and others on a bipartisan basis to strike the appropriate balance for proper oversight of #ppploans and appropriate protection of small business information. @SBAgov,” said Secretary Mnuchin in a tweet that was posted at 9:34 am on June 15.