Economics
Fed Pleads Anew for Stimulus, and Markets Start to Give Up Hope
- Parade of central bankers warn of slowdown after solid restart
- Careful Powell contrasts with full-throated calls from others
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A parade of Federal Reserve officials Wednesday stressed that more fiscal stimulus is critical to sustaining the economic recovery, and U.S. stocks tumbled as pessimism began sinking in that Congress would ever deliver a new aid package.
Chairman Jerome Powell continued to wave the fiscal flag carefully at a congressional hearing -- amid a political stalemate -- saying that more support was likely to be necessary. Others were more full-throated, with Cleveland Fed President Loretta Mester saying it was very much needed given the “deep hole” the economy is climbing out of.