The fed will actively use its powers until the US economy feels confident.
The US Federal reserve system (FRS) announced the launch of a loan program totaling up to $ 2.3 trillion for American businesses, local governments, and households affected by the country’s coronavirus outbreak.
Speaking at the Brookings Institution in Washington, Federal Reserve Chairman Jerome Powell said that the fed intends to use its powers “decisively, actively and aggressively” until there is the confidence that the US economy has begun to recover.
The Federal government has announced the launch of the main street business loan Program as part of the CARES act, the largest economic aid package ever passed by Congress. The term “main street” is used in the United States to refer to small businesses, workers, intellectuals, and all other taxpayers, which are contrasted with the bankers and traders from Wall Street in New York.
According to Powell, “there is every reason to believe that the economic recovery when it comes, maybe sustainable” because the US economy grew rapidly until the beginning of the coronavirus outbreak. The fed Chairman added that while everyone wants the economy to open as soon as possible, the authorities also want to avoid a “false start,” in which there will be a partial opening of the economy, which may be followed by a second wave of infections, and the country will return to the “starting point.”