WASHINGTON – Federal Reserve Chairman Jerome Powell says the U.S. economy faces a deep downturn with “significant uncertainty” about the timing and strength of a recovery.
He warns that the longer the recession lasts, the worse the damage that will be inflicted on the job market and businesses.Powell stresses in prepared testimony to Congress that the Fed is committed to using all its financial tools to cushion the economic damage from the coronavirus.
But he says that until the public is confident the disease has been contained, “a full recovery is unlikely.”The chairman warns that a prolonged downturn could inflict severe harm, especially to low-income workers who have been hit hardest.