WASHINGTON (AP) — Federal Reserve Chair Jerome Powell warned Wednesday of the threat of a prolonged recession resulting from the viral outbreak and urged Congress and the White House to act further to prevent long-lasting economic damage. But Powell cautioned that widespread bankruptcies among small businesses and extended unemployment for many people remain a serious risk. This money would come on top of roughly $3 trillion in earlier financial assistance that the government has provided. Powell repeated his previous warnings that the Fed can lend money to solvent companies to help carry them through the crisis. Powell’s downbeat view contrasted with a speech Monday by Charles Evans, president of the Federal Reserve Bank of Chicago.

Source: Huffington Post May 13, 2020 13:52 UTC