Fed’s Powell: More spending from Congress ‘costly but worth it’
Congress is divided over what next steps to take to address the crisis. House Speaker Nancy Pelosi is planning to move ahead with a Friday vote on a new $3 trillion relief package despite resistance from President Donald Trump and Senate Republicans, who say there hasn’t been enough time since the $2 trillion CARES Act passed to determine whether new legislation is needed.
The Fed chief cited “avoidable household and business insolvencies” and “long stretches of unemployment” among a litany of potential realities that lie ahead.
“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,” he said.
The central bank will release a survey on Thursday that shows that nearly 40 percent of people in households making less than $40,000 a year had lost a job in March, he said.