Federal Reserve Chairman Jerome Powell arrives for a news conference following the meeting of the Federal Open Market Committee in Washington, December 11, 2019.
Joshua Roberts | Reuters
Federal Reserve Chairman Jerome Powell reiterated his commitment to an ‘all-in’ approach to recovery, promising in a commentary for The Wall Street Journal to keep the policy loose.
The central bank chief said the US “combined determined and aggressive policies to make the outlook better.”
“But the recovery is far from complete, so we at the Fed will continue to provide the economy with the support it needs for as long as it needs to,” he wrote in a headline. “I really believe that we will emerge stronger and better from this crisis, as we have so often done before.”
Powell’s remarks come two days after the Fed voted to keep short-term lending rates near zero and continue a program that involves buying at least $ 120 billion a month in bonds.
Along with these measures, central bank officials have promised not to change policy until the economy has achieved full and inclusive gains, even if it means that inflation could become warmer over a period of time than the traditional target of 2% of the Fed.
Such an approach is essential to keep the recovery going, Powell said.
“The scale of the crisis has required a general response from the government,” he wrote. “Congress has delivered its largest post-war economic recovery package. At the Fed, we have used all the tools at our disposal to prevent a financial collapse and ensure that credit to households and businesses can continue.”
Powell noted that the biggest impact of the Covid-19 crisis is still falling on those who can tolerate it the least, stressing the importance of aggressive policies.
—Read the full Powell comment here.