Fed Chair Jerome Powell told NBC that the US may “well be in a recession”. But this is different from a “normal recession” as “there is not anything fundamentally wrong with our economy”. And, “quite the contrary, we’re starting from a very strong position”. Also, it’s not a “typical downturn” and “at a certain point, we will get the virus under control and confidence will return.”
Powell also said Fed’s recent measures will provide capital to businesses that need it. “When it comes to this lending, we’re not going to run out of ammunition, that doesn’t happen,” he added. “We still have policy room in other dimensions to support the economy.”
He explained that Fed is targeting places “where credit is not being offered where it should be offered.””We can step in and make that happen. That’s a very positive thing and appropriate thing in this highly unusual situation we’re in,” he said.