On December 1, local time, Fed Chairman Powell and U.S. Treasury Secretary Mnuchin attended the hearing held in the U.S. Senate Banking Committee.
In a prepared speech, Powell reminded the US Congress that although news about vaccine development has boosted the medium-term economic outlook, the rise in the number of new coronavirus cases may “in the future A few months bring challenges”.
Powell reiterated that the economic outlook is still very uncertain. The increase in the number of new coronavirus cases at home and abroad is worrying and may bring challenges in the coming months. Until people are convinced of safety, the economy is unlikely to fully recover.
Powell said that despite the positive progress in vaccine research and development, there are still millions of unemployed Americans in the United States, and many small businesses are at risk of closing down during the winter.
At the hearing, Powell said that the US economy has recovered faster than expected so far, but the labor market is still 10 million fewer jobs than before the outbreak.
Powell called in Congress that the Federal Reserve will use all tools until the crisis is completely and truly eliminated, and may need the help of other government departments, including Congress.
10 days ago, Mnuchin wrote to Powell, urging the Federal Reserve to extend the duration of four emergency loan programs by 90 days and allow the other five programs to be on December 31 The day ended as scheduled. He said that the Fed must return unused funds so that Congress can reallocate the funds and use them elsewhere.
Powell did not directly mention the disagreement with Mnuchin in his speech, but said that the Fed has helped release nearly $2 trillion in funds since April. To support large and small businesses, non-profit organizations, and state and local governments.
In response to questions from members of Congress, Powell reiterated that the anti-epidemic stimulus bill passed by Congress has proved to have played a positive role in helping the economy through the epidemic, and it may still be Further financial incentives are needed.
After a dispute over whether to allow the emergency stimulus plan to expire on time, this hearing was the first time Powell and Treasury Secretary Mnuchin appeared together.
Mnuchin stated that he would provide emergency relief of $455 billion in unusedThe transfer of funds to an account that the new government cannot use at will is acting in accordance with the law.
Mnuchin stated in his prepared testimony that based on the latest economic data, a targeted fiscal plan is the most appropriate response for the federal government. It is strongly recommended that Congress use the unspent US$455 billion in the New Coronavirus Aid, Relief and Economic Security Act to pass an additional bill with the support of both parties.
Earlier that day, a group of bipartisan senators announced a US$908 billion economic stimulus package, with US$288 billion for small business assistance. Allocate 180 billion U.S. dollars for unemployment benefits and provide 160 billion U.S. dollars to state and local governments. The scale of this stimulus proposal is lower than the $2 trillion stimulus package passed by Democrats in the House of Representatives in September, but higher than the $500 billion stimulus package proposed by Senate Republicans at about the same time.