Fed's Powell: Path ahead for economy remains ‘highly uncertain’

Ross J Burland FXStreet

Federal Reserve Chair, Jerome Powell, has reiterated in testimony to Congress that the Fed will ‘do what we can, for as long as it takes’ to support recovery.

Many economic indicators show ‘marked improvement’ - despite improvement from depth of crisis, path ahead for economy remains ‘highly uncertain’,

A full recovery is likely to come only when people are confident that it is safe to reengage in a broad range of activities.

The path forward will depend on keeping the virus under control, and on policy actions taken at all levels of government.

Our economy will recover fully from this difficult period.

We remain committed to using our full range of tools to support the economy for as long as is needed.

Powell has stated.

Coronavirus Aid, Relief, and Economic Security Act

Full testimony

Market implications

We will be hearing much of the same things this week as markets have already priced in since the Fed's interest rate decision.

The steps that the Fed has taken to ensure plentiful USD supply.

Fed Chairman Powell appears before the House Financial Services panel tomorrow with US Treasury Secretary Mnuchin, and Powell will also appear before the House Panel on COVID-19 on Wednesday.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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