Fed Governor Michelle Bowman warned in a speech that “financial pressures on many small businesses remain acute”. She’s concerned that “a growing number of small businesses have already been closed permanently or are on the verge of failure”.
While the pandemic restrictions may have been helpful, she said, “they appear to have disproportionately impeded small firms’ ability to maintain their operations and revenue sources, leading to substantial cash-flow pressures.” The restrictions “came at a very high economic cost,” she added.
“My FOMC colleagues and I expect to maintain an accommodative stance of monetary policy until employment and inflation achieve levels consistent with our maximum employment and inflation goals,” she concluded. “At this point, the economy is still a long way from those goals. We are making progress, but I think it will take some time for us to get there.”
