Powell warns of sustained recession due to virus

Fed urges action to prevent long-lasting economic damage.

By

World News

May 13, 2020 - 10:04 AM

Federal Reserve Board Chairman Jerome Powell. Photo by Alex Wong/Getty Images/TNS

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.

The Fed and Congress have taken far-reaching steps to try to counter what is likely to be a severe downturn resulting from the widespread shutdown of the U.S. economy. But Powell cautioned that widespread bankruptcies among small businesses and extended unemployment for many people remain a serious risk.

“We ought to do what we can to avoid these outcomes,” Powell said.

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