WE’RE AT SESSION LOWS.
THE DOW DOWN BETTER THAN 505
POINTS.
TO EDWARD LAWRENCE, HOW THE FED
CHAIRMAN, MAYBE HIS MUSINGS
MOVED THIS SOUTHWARD.
WHAT DO YOU THINK, EDWARD?
REPORTER: EXACTLY.
SOME OF THOSE YOU TICKED OFF
THERE, THE ECONOMY NOT REOPENING
IN THOSE VARIOUS AREAS IS NOT
THE ROAD TO RECOVERY THE FED
CHAIRMAN WAS TALKING ABOUT.
HE SAYS WE’RE IN THE WORST
RECESSION SINCE WORLD WAR II.
HE HAS SEEN SEVERE DECLINE IN
ECONOMIC ACTIVITY WITH JOB GAINS
ERASED OVER THE PAST DECADE WE
HAD, CALLING THE CORONAVIRUS THE
LARGEST SHOCK IN HISTORY.
THE POWELL SAYS THE ECONOMIC
FUNDAMENTALS WERE STRONG GOING
INTO THIS.
THERE WAS NO BUBBLE THAT CAUSED
THIS DOWNTURN.
THE VIRUS REALLY WAS THE VIRUS.
POWELL SAYS THE FED WILL TAKE
FURTHER ACTION SAYING THIS IS
NOT THE FINAL CHAPTER RELATED TO
ESTIMATE LAWS BECAUSE HE SAYS WE
NEED TO AVOID A WEAK RECESSION
OR A WEAK RECOVERY AND PROLONGED
RECESSION.
LISTEN.
>> THE RESULT COULD BE AN
EXTENDED PERIOD OF LOW
PRODUCTIVITY GROWTH AND STAGNANT
INCOMES.
WE OUGHT TO DO WHAT WE CAN TO
AVOID THESE OUTCOMES.
THAT MAY REQUIRE ADDITIONAL
POLICY MEASURES.
AT THE FED WE WILL CONTINUE TO
USE OUR TOOLS TO THEIR FULLEST,
UNTIL THE CRISIS HAS PASSED AND
THE ECONOMIC RECOVERY IS WELL
UNDERWAY.
REPORTER: YOU HEARD IT THERE,
FULLEST EXTENT UNTIL THE
ECONOMIC RECOVERY IS WELL
UNDERWAY, A SIGNAL FEDERAL FUNDS
RATE MAY STAY NEAR ZERO FOR SOME
PERIOD OF TIME.
POWELL HAS BEEN SAYING THIS IS
THE FASTEST AND LARGEST FISCAL
RESPONSE SINCE WORLD WAR II,
CALLING REACTION TO PROTECT THE
ECONOMY SWIFT AND FORCEFUL.
HOPES SMALL BUSINESSES COULD BE
SAVED.
SMALL BUSINESSES WILL BE A
SIGNAL HOW ROBUST THE RECOVERY
WILL BE.
IF YOU DON’T LOSE SMALL
BUSINESSES YOU DON’T LOSE JUST
JOBS, YOU LOSE DECADES ENGINE
NEWT YOU CAN’T REPLACE.
HE SEES UNEMPLOYMENT RATE
PEAKING NEXT MONTH BUT SEE AS
SHARP DECLINE BUT WE’LL BE ABOVE
THE 3 1/2% WE HAD INTO IT.
HE SAYS WE CAN GET BACK TO THE
3 1/2% BUT HE SAYS WE HAVE TO
GET ON THE ROAD TO RECOVERY AND