Powell warns of 'tragic' consequences if government doesn't back stronger recovery

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Federal Reserve Chairman Jerome Powell said Tuesday there could be tragic consequences if Congress does not provide more aid.

“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said in the text of a speech for an event hosted by the National Association for Business Economics on Tuesday.

“By contrast, 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,” Powell added.

“A long period of unnecessarily slow progress could continue to exacerbate existing disparities in our economy,” Powell said. “That would be tragic, especially in light of our country’s progress on these issues in the years leading up to the pandemic.”

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