Fed Chair Jerome Powell said in a speech that the economic expansion is “still far from complete”. “At this early stage I would argue that the risks of policy intervention are still asymmetric,” he added. “Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses.”
Powell also noted, “the risks of overdoing it seem, for now, to be smaller. Even if policy actions ultimately prove to be greater than needed they will not go to waste. The recovery will be stronger and move faster.”
On the economy, Powell also said that the improvement has “moderated” and “risk that the rapid initial gains from reopening may transition to a longer-than-expected slog back to full recovery.”
