After the Fed announced a new round of “spread money” plan, Powell “appeared” at the Brookings Institution, a well-known American think tank.
On April 9, local time, Fed Chairman Powell delivered a speech saying that with the support of the US Congress and the Treasury Department, the Fed is using emergency loan rights on an unprecedented scale.
Powell said that after the Fed took action, the market situation gradually improved. The Fed will continue to use lending tools until the US economy returns to the track of economic recovery.
In terms of economic prospects, Powell said that he expects US economic activity to be very weak in the second quarter, and the unemployment rate may temporarily rise to a very high level for a period of time. Once the epidemic subsides, the economy is expected to rebound relatively quickly.
Powell even bluntly stated that as long as there is demand, the Fed can continue to provide support for the economy, and inflation is not a problem that the United States needs to worry about. The most important thing the Fed can do now is to support a strong economic recovery.