UPDATED 4:05 PM PT — Wednesday, July 29, 2020
According to Federal Reserve Chairman Jerome Powell, a full economic recovery remains unlikely until people are confident that it’s safe to engage in broad economic activities. On Wednesday, Powell said the economy’s path forward will partially depend on policy actions taken at all levels of government to provide relief and support as needed.
The chairman also noted federal stimulus payments and expanded unemployment benefits “provided substantial and timely support to household incomes.”
However, he warned a recent rise in COVID-19 cases has been affecting economic activity overall.
“As we have emphasized throughout the pandemic, the path forward for the economy is extraordinarily uncertain and will depend, in large part, on our success in keeping the virus in check,” stated Powell. “Indeed, we have seen some signs in recent weeks that the increase in virus cases and the renewed measures to control it are starting to weigh on economic activity.”
He reiterated that the Federal Reserve is committed to ensuring the nation’s economic recovery.