Economics
Powell Says Solid Expansion Likely With Virus Surge Posing Risks
- Fed chair says too soon to close emergency lending facilities
- Powell sees some signs of pullback in consumer spending
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Federal Reserve Chair Jerome Powell said the U.S. economic recovery is likely to continue at a “solid” pace yet risks losing momentum as the virus surges, adding that it was too soon to close the Fed’s emergency lending facilities.
Powell called rising virus infection rates a “significant” downside risk “especially in the near term,” during an online event Tuesday hosted by the Bay Area Council. “The concern is that people will lose confidence in efforts to control the pandemic and they will pull back from activities that they think might put them at risk of infection, and there are some signs of that already.”