{"id":107789,"date":"2021-02-23T21:31:02","date_gmt":"2021-02-23T21:31:02","guid":{"rendered":"https:\/\/fin2me.com\/?p=107789"},"modified":"2021-02-23T21:31:02","modified_gmt":"2021-02-23T21:31:02","slug":"is-fed-chair-powell-cool-with-more-fiscal-aid-suddenly-he-wont-say","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/is-fed-chair-powell-cool-with-more-fiscal-aid-suddenly-he-wont-say\/","title":{"rendered":"Is Fed Chair Powell 'cool' with more fiscal aid? Suddenly he won't say"},"content":{"rendered":"

(Reuters) – With a heated political debate underway over the Biden administration\u2019s $1.9 trillion proposed pandemic relief package, it was entirely predictable that U.S. lawmakers would jump at the chance to ask Federal Reserve Chair Jerome Powell to weigh in.<\/p>

FILE PHOTO: U.S. Federal Reserve Chairman Jerome Powell\u00a0arrives to speak to reporters during a news conference in Washington, U.S., March 3, 2020. REUTERS\/Kevin Lamarque<\/figcaption>

But in contrast with his repeated calls last year for additional fiscal support and the dire consequences of skipping it, Powell declined to do so on Tuesday during the first of two days of congressional testimony.<\/p>\n

\u201cI have consistently not taken a position on this bill,\u201d Powell told Republican Senator John Kennedy. \u201cIt\u2019s not appropriate for the Fed to be playing a role in these fiscal discussions about particular provisions and particular laws…it\u2019s not our role.\u201d<\/p>\n

Kennedy pressed: \u201cIf we don\u2019t pass the bill, you\u2019re cool with that?\u201d<\/p>\n

\u201cThat would be expressing an opinion. So that\u2019s what I\u2019m not doing, is expressing an opinion,\u201d Powell answered, a response reminiscent of the kind of cryptic volley offered up by former Fed Chair Alan Greenspan during congressional testimony. \u201cBy being either cool or uncool, I would have to be expressing an opinion.\u201d<\/p>\n

It was unclear if Powell\u2019s studied objectivity on the issue reflected any change of heart on the issue. The economy, he said several times, is a \u201clong way\u201d from health and needs further support.<\/p>\n

\u201cI would interpret it as a simple reaction to the fact that a big package is on the way,\u201d says Julia Coronado, president of analysis firm Macropolicy Perspectives.<\/p>\n

Indeed, she said, Powell\u2019s forecast Tuesday that the U.S. economy may grow in the range of 6% this year \u201c100%\u201d means he is already penciling in the additional fiscal aid.<\/p>\n

The U.S. House of Representatives Budget Committee on Monday approved the relief package, advancing it toward a full House vote in coming days and, eventually, toward consideration in the Senate, where Democrats hold a slim majority.<\/p>\n

Last year, as Congress and the Trump administration repeatedly failed to move forward on fiscal relief, Powell struck a decidedly different tone.<\/p>\n

In October, for instance, Powell told a group of business economists that \u201cthe recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods.\u201d<\/p>\n

And in December, as lawmakers appeared close to what ultimately was a $892 billion aid package, Powell went further. \u201cThe case for fiscal policy right now is, is very, very strong,\u201d he said in a news conference. While the details are \u201cup to Congress,\u201d he said, the need for households and businesses to have fiscal support is \u201cwidely understood.\u201d<\/p>\n

\u201cI certainly would welcome the work that Congress is doing right now,\u201d he said then.<\/p>\n

On Tuesday, however, Powell declined more than once to comment on the current bill.<\/p>\n

But he did make it clear that if the government does choose to deliver a \u201cburst\u201d of fiscal support, he would not expect to see a surge in unwanted inflation.<\/p>\n

The second half of the year is likely to be \u201cvery good\u201d and stronger consumer spending could push up prices, he said – but he would expect that effect to be neither large nor persistent.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters) – With a heated political debate underway over the Biden administration\u2019s $1.9 trillion proposed pandemic relief package, it was entirely predictable that U.S. lawmakers […]<\/p>\n","protected":false},"author":3,"featured_media":107788,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nIs Fed Chair Powell 'cool' with more fiscal aid? Suddenly he won't say - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/is-fed-chair-powell-cool-with-more-fiscal-aid-suddenly-he-wont-say\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is Fed Chair Powell 'cool' with more fiscal aid? 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