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Fed Chair Warns US Economic Recovery May Falter Without More Government Aid

VOA News

   Federal Reserve Board Chairman Jerome Powell warned Tuesday that the
   U.S. economy's recovery from the recession triggered by the coronavirus
   crisis may falter if the virus is not controlled and economic growth is
   not sustained.

   Powell called for more help for households and businesses, including
   expanded unemployment insurance payments, payments to households and
   financial aid for small businesses.

   He told the National Association for Business Economics that government
   assistance has helped spur economic growth but added negative trends
   could still emerge without more government action.

   "The expansion is still far from complete," Powell said. "Too little
   support would lead to a weak recovery, creating unnecessary hardship
   for households and businesses. Over time, household insolvencies and
   business bankruptcies would rise, harming the productive capacity of
   the economy, and holding back wage growth."

   The economic recovery has slowed in recent months after rapidly
   improving in May and June. Incomes declined in August and job growth
   slowed in September to 661,000, significantly less than the 1.5 million
   new jobs in August and 1.8 million in July.

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