Powell, Fed Chair: "Recession Worst Since WWII... Will Maintain Current Interest Rates" (Update)

Jerome Powell, Chairman of the U.S. central bank Federal Reserve (Fed), is testifying at the Senate Banking Committee's monetary policy hearing in February.
[Photo by AP Yonhap News]

[Asia Economy Reporter Heo Midam] Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), described the economic situation following the spread of the novel coronavirus (COVID-19) as "the worst since World War II."

According to the U.S. Senate Banking Committee website on the 18th (local time), Powell pointed out in a written statement submitted ahead of his testimony on the 19th, "The available economic data for this quarter shows a sharp decline in production and an equally sharp increase in unemployment."

He added, "The scope and speed of this economic downturn are unprecedented in modern times and significantly worse than any recession since World War II."

In particular, he stated, "More than 20 million people lost their jobs just two months after the pandemic arrived en masse," and "this steep decline in economic activity has caused indescribable pain. Lives have been turned upside down amid tremendous uncertainty about the future."

He emphasized, "The virus has not only caused economic disruption but also placed enormous pressure on some essential financial markets, impairing the flow of credit."

Powell then said, "In March, we lowered the policy interest rate to near zero," and "We will maintain rates at this level until we are confident that the economy is on track to achieve maximum employment and price stability and has withstood recent developments."

Finally, he stressed, "During this difficult time, even though such actions are only part of a broader public sector response, we are committed to using the full range of tools at our disposal to support the economy."

This content was produced with the assistance of AI translation services.