Federal Reserve Chairman Jerome Powell arrives at a press conference after the Federal Open Markets Committee meeting in Washington on December 11, 2019.
Joshua Roberts | Reuters
Federal Reserve Chairman Jerome Powell reiterated his commitment to an “all-in” approach to recovery, pledging in a comment for the Wall Street Journal to keep politics loose.
Pointing to the “greatly improved” economy, the head of the central bank said the US decision and aggressive policy have combined to make the prospects for the future brighter.
“But the recovery is far from complete, so the Fed will continue to provide the economy with the support it needs for as long as it takes,” he wrote in an opinion. “I really think we will come out of this crisis stronger and better, as we have often done before.”
Powell’s comments came two days after the Fed voted to keep short-term benchmark lending rates anchored near zero and continue with a program that involves acquiring at least $ 120 billion a month in bonds.
Along with these measures, the promise of central bank officials not to change policy until the economy achieves full and inclusive employment gains has been presented, even if that means inflation stays warmer than the Fed’s traditional 2% target over a period of time.
This approach is essential to maintaining recovery, Powell said.
“The scope of the crisis required a full government response,” he wrote. “Congress provided its largest post-war economic recovery package. At the Fed, we used all the tools at our disposal to prevent a financial collapse and ensure that credit could continue to flow to households and businesses “.
Powell noted that the greatest impact of the Covid-19 crisis continues to lie with those least able to withstand it, stressing the importance of an aggressive policy.
—Read Powell’s full comment here.