Breaking: FOMC Chairman Powell says additional policy measures may be needed

Jerome Powell, Chairman of the Federal Reserve System, on Wednesday said the coronavirus crisis raises long term concerns.

"Additional policy measures may be needed to avoid lasting damage to the economy," Powell added while delivering his prepared remarks at an event organized by the Peterson Institue for International Economics. 

Market reaction

The US Dollar Index edged lower on Powell's remarks and was last seen down 0.38% on the day at 99.63.

Key takeaways

"Recovery may take time to gather momentum."

"Coronavirus shock appears to be the largest on record."

"Fed survey shows 40% of households with less than $40,000 income have lost a job."

"US fiscal response has been the fastest, largest for any postwar downturn."

"Fed has also acted with unprecedented speed, force."

"Policy response has provided a measure of relief, stability."

"Fed will continue to use tools to their fullest until the crisis has passed, recovery well underway."

"Fed loans will help many borrowers get through the crisis, but time can turn liquidity problems into solvency problems."

"Additional fiscal support could be costly, but worth it if it helps avoid long-term economic damage."

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