Fed chair Jay Powell did a rare TV interview today, and told markets the Fed will keep leaning into this crisis. Here are a few other Powell quotes excerpted from a Bloomberg summary of the Today Show interview.
“We will keep doing that aggressively and forthrightly, as we have been. When it comes to this lending we’re not going to run out of ammunition. That doesn’t happen.”
“We know that economic activity will decline probably substantially in the second quarter,” Powell said, adding that people were intentionally withdrawing from normal life to protect their health.
“This is a unique situation, this is not a typical downturn. At a certain point we will get the spread of the virus under control and at that time confidence will return. Businesses will reopen again, people will come back to work.”
“You may well see significant rises in unemployment, significant declines in economic activity, but there can also be a good rebound on the other side of that.”
“This bill that’s just passed is going to try to provide relief and stability,” he said. The legislation contains additional funds for the U.S. Treasury that can be used to boost the Fed’s lending firepower, he said, while the central bank’s actions will also lay the groundwork for a speedy economic recovery.