Jay Powell, Federal Reserve, Federal Government discussed on Marketplace Morning Report with David Brancaccio
Jay Powell has been sending a message low key but a message in a speech last week and interview with CBS sixty minutes. He's basically said recovery is going to be a while and the government needs to do more to help see the country through this economic crisis. Julia Coronado is founder of macro policy perspectives and is a member of the Economic Advisory Panel of the Federal Reserve Bank of New York. Hey Julia so chairman Powell. He said you know this idea of v-shaped recovery not going to happen. What IS RECOVERY. GonNa look like. According to the chair. The chair thought that it's reasonable possible that we could resume growing In the second half of the year and he had a optimism over the medium term for the US economy. But he did feel that. It's GonNa take some time to get back to normal. The Federal Reserve has already done a lot. It's injected trillions of dollars worth of liquidity into the economy it's lending to businesses chair. Paul said defied could do more. I mean Kenneth. Oh Cheer Powell said that the Fed's power to lend is unlimited so it can continue to lend through these facilities. It's creating as much as it needs to. He did distinguish between lending and spending. The Fed can lend money but it can't give money out. Only the federal government can do that and he's suggesting the federal government needs to do more of it. Well Cheer Talents. Very careful not to cross the line between the independence of the Fed and the federal government's decisions But basically by saying it's not going to be a D shaped recovery and letting us know the limits of his powers. It's a message to Congress that yes they should do more They're probably going to need to do more to bridge. This gap of what he said three to six months and prevent unnecessary defaults amongst businesses amongst households and among state and local government Julia Coronado founder of macropolicy perspectives. Thanks so much. My pleasure. Markets. Meanwhile have gotten a jolt of about the. Future Biotech company MODERNA reported success in an early stage Corona virus vaccine trial at reported its vaccine successfully caused all forty five participants to produce binding antibodies at levels seen in patients who had recovered from Covet nineteen and that has pushed stocks up this morning. Let's take a look. The Dow Jones Industrial Average is up seven hundred and six points that is three percent the S. P. Five hundred is up two point four percent. The Nasdaq up. Two percent. The ten year Treasury yield is rising at point six nine percent now for now as we all know hardly. Any of us are out there shopping and for some already struggling stores. This was just too much on Friday. Jc Penney became several major retailers to declare bankruptcy. This has people wondering if more stores are GonNa Follow Marketplace's Jasmine Garsten reports Neiman Marcus J. crew and now JC penney have all declared bankruptcy. Pandemic has dealt a major blow to retail but even when the economy was booming these businesses struggled. They had crushing debt and too many brick and mortar stores at a time when people shop online experts. Say the lesson is if you can't do well during good times you'll fall quick during the bad ones Professor Erik. Gordon is what the University of Michigan the pandemic didn't put these companies out of business these companies. They were going down the drain before the pandemic. So you have to stay up to date. These are retailers fell behind the Times. And we're having trouble catching up. Gordon says we can expect more closures and bankruptcy filings. All eyes are on other industry. Giants like nordstroms which has already permanently shuttered down over a dozen locations. That's bad news for retail workers. Tens of thousands have been furloughed and more layoffs are expected. I'm Jasmine Garza for marketplace..