Former Fed chair’s testify on Covid 19 in response economic crisis
Former Fed chair’s Janet Yellen and Ben Bernanke are testifying to Covid 19 and response to economic crisis. There comments are appearing on the Brookings institute blog
- in many respects this recession is unique
- forecasting recovery is difficult
- controlling the spread of the virus must be 1st priority for restoring more normal levels of economic activity
- members of Congress, local leaders and other policymakers need to do all they can to support testing and contact tracing, medical research and sufficient hospital capacity.
- They must work to ensure that businesses, schools and public transportation have what they need to operate safely
- pace of recovery could be slow, uneven
- the longer the recession last the greater the damage will reflect on household and business balance sheets
- the depth of the recession may leave scars
- depending on the course of the virus, some restructuring of the economy may be needed
- Fed likely to give a for guidance on the lift off
- the yield curve control possible, not certain
- the financial system is in much better shape today than it was during the financial crisis
- new same as measured by Congress are necessary including a comprehensive plan to support medical research, testing, contact tracing and hospital capacity, enhanced unemployment insurance should be extended, and Congress should provide substantial support to state and local governments
The full report can be found HERE