Fed’s Brainard calls for more stimulus from Congress amid ‘highly uneven’ recovery

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currencyinvestor19
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Joined: Sun Jul 05, 2020

Fed’s Brainard calls for more stimulus from Congress amid ‘highly uneven’ recovery

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Federal Reserve Governor Lael Brainard issued a call Wednesday for more fiscal support from Congress, saying more stimulus is needed to address a recovery that has left out large parts of the economy.

“The recovery remains highly uncertain and highly uneven — with certain sectors and groups experiencing substantial hardship. These disparities risk holding back the recovery,” Brainard said remarks to the Society of Professional Economists.

“Further targeted fiscal support will be needed alongside accommodative monetary policy to turn this K-shaped recovery into a broad-based and inclusive recovery,” she added.

The central bank official cited several areas of concern: slowing gains in the jobs market from the 21 million positions lost in the early days of the pandemic, tighter financial conditions for small businesses and the likelihood of decreased household spending as previous fiscal aid evaporates.
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