The economic recovery would accelerate “if there is support coming from Congress and from the Fed,” said Jerome Powell, Chair of the U.S. Federal Reserve, in testimony before Congress on 23 September.
“The power of fiscal policy really is unequaled by anything else,” he contended.
Although about half of the 22 million workers who lost jobs or hours during the shutdown have returned to their jobs, “there’s still a long way to go” and “we need to stay with it, all of us,” Powell said.
The economy has recovered “very robustly,” Richard Clarida, Federal Reserve Vice Chair, said in an interview with Bloomberg, “but we’re still in a deep hole.”
TREND FORECAST: Yesterday, House Democrats released a $2.2 trillion stimulus bill, and today it is reported House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin will sit down and discuss it.
Republicans have refused to exceed $1 trillion. President Trump has said he will support a package of about $1.5 trillion.
Despite the number, again, it will only temporarily boost the economy. The larger the stimulus number, the higher gold and silver prices rise as the budget deficit widens and the dollar depreciates.
