Two former Federal Reserve chairs, Janet L. Yellen and Ben S. Bernanke, pushed for further economic relief from lawmakers, adding that it would take years before unemployment was back to pre-pandemic levels.
Two former Federal Reserve chairs, Janet L. Yellen and Ben S. Bernanke, pushed for further economic relief from lawmakers, adding that it would take years before unemployment was back to pre-pandemic levels.
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Ex-Federal Reserve Chairs Urge More Economic Relief From Congress
Two former Federal Reserve chairs, Janet L. Yellen and Ben S. Bernanke, pushed for further economic relief from lawmakers, adding that it would take years before unemployment was back to pre-pandemic levels.
“We want people to be able to pay their bills, and to stay in their homes. I think also I would add that we need to worry about health insurance, which is another thing that happens when you lose your job. The other purpose of the unemployment insurance is to increase aggregate demand. People will go out and spend. And that will help the economy generally. But there is this very powerful sectoral effect. And there are some sectors, like restaurants, that it’s going to be a while before they can operate normally because of the effects of social distancing and so on. And it’s very hard to get around that problem.” “With the resurgence of the virus, progress is slowing and could even reverse, even if things have continued on a good track. I think it will take a number of years — two, three years — to get unemployment down to levels anywhere close to where we were before the pandemic.” But the Fed has been trying to work with the banks. They changed the accounting standard, the C.E.C.L. accounting standard, to make it that they don’t have to assess the depth of the recession quite the same way. They changed the supplementary leverage ratio. They’re working, they’re telling the banks to work with the borrowers, as you described. I think we don’t want ... It’s really good news that the banking system is in such strong condition but I think it’s important to continue to evaluate them. For example, through their stress tests. And if it becomes necessary for some banks to raise new capital, that was the thing that stopped the crisis in 2009. If it becomes necessary to do that, I hope the Fed and the other bank regulators will enforce that.”
Ex-Federal Reserve Chairs Urge More Economic Relief From Congress
Two former Federal Reserve chairs, Janet L. Yellen and Ben S. Bernanke, pushed for further economic relief from lawmakers, adding that it would take years before unemployment was back to pre-pandemic levels.
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