Fed's Powell: Evictions, mortgage defaults could increase without further fiscal support

Eren Sengezer FXStreet

While testifying before the Senate Banking Committee on Thursday, Jerome Powell, Chairman of the Federal Reserve System, warned that evictions and mortgage defaults could increase in not too distant future without further fiscal assistance to families.

"There is downside risk to the economy if some form of support to households doesn't continue," Powell added. "In the long run, coronavirus vaccine will be what it takes to get travel back to where it was before the pandemic."

Meanwhile, regarding additional fiscal aid, Treasury Secretary Steven Mnuchin said that some aid is better than none.

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was up 0.17% on a daily basis at 94.50.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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