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Fed's jerome Powell Says Congress Should Do More To Save Economy


With all possible. Respect to Jay Powell. The Chairman of the Federal Reserve is saving a cratering. American economy is no easy thing right but with all respect the time ten weeks into this thing has come to say all right. Show me what you got and we say that because Miss Pal has in television interviews in congressional testimony made clear that he believes Congress while already having done a lot of risky work should do more but he has also said. Mr Powell has what us the Fed. Oh we're not gonNA run at it and munition in more proper actual fedspeak yesterday. Ms Powell told the Senate Banking Committee. The Fed is quote committed to using our full range of tools to support the economy in this challenging time and quote so those tools what might be. Here's marketplace's Mitchell Hartman. Think of the Fed like a plumber. It's job is to make sure money keeps flowing through the US financial system when the system gets clogged by say a pandemic. The Fed whips out its monetary policy wrenches and drain remorse to unclog the flow of money. Make it cheaper and less risky to borrow and land. That's what the Fed did in mid March when it cut interest rates to zero says Brad McMillan at Commonwealth financial and that was really key to preventing paddock. Because of what? It said that the central bank was not going to let a crisis happen since then. The feds kept money flowing by adjusting banking rules. Buying up Treasury and mortgage bonds and the list goes on says Mark Zandi at Moody's analytics so the Stock Bond Markets Credit markets. Broadly are functioning. Well they still have some more room to maneuver here if they need to. Zandi says the Fed could backstop the mortgage market as more homeowners delay monthly payments and could buy more and riskier corporate bonds to keep credit flowing and the Fed is about to get money out to small and mid sized businesses through its new main street lending facility but one thing the Fed can't do says Andy is pumped money directly into the economy. Good things going again. Now that the people lost lots of jobs people very nervous lot of uncertainty. And that's more difficult for the Fed. The Central Bank could try to help Americans more directly says MIT economist. Deborah Lucas. Let's call helicopter money. They could print money and they could distribute it to households but she says that would be risky and would require the Fed to manipulate the money supply and banking system in ways it never has before I'm Mitchell Hartman for

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