Fed, Congress need to enact more stimulus for severe recession - Business Insider

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The Fed and Congress will need to provide more stimulus to defend from a 'very severe' economic slowdown, Dallas central bank chief says

Dallas Federal Reserve Bank President Robert Kaplan poses at a luncheon in El Paso, Texas, U.S., October 2, 2018.Fresh monetary and fiscal aid is needed if the economy is to survive a "historic contraction," Robert Kaplan, president of the Federal Reserve Bank of Dallas, toldKaplan sees US GDP sliding as much as 30% in the second quarter alongside unemployment soaring to 20%.

The central bank has already unleashed trillions of dollars in relief through nine lending facilities, while Congress issued more than $2 trillion in aid with the CARES Act. The measures helped stabilize a plummeting financial sector, but are not enough to bridge an unprecedented recession, Kaplan said.on Friday. "There's going to be a need for stimulus in the future. That's likely to have to come from the fiscal authorities.

Kaplan sees US gross domestic product sliding as much as 30% in the second quarter and unemployment surging to 20%. Full-year output will drop by 4.5% to 5%, and the unemployment rate can end the year closer to 8% if effective policy is enacted, the president projected. The Dallas Fed president's comment follows a similar remark from Fed chief Jerome Powell at a Wednesday press briefing. He called on legislators to issue fresh fiscal aid after confirming that the Federal Reserve would maintain its near-zero interest rates.

 

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Socialism for losses. Picking winners and losers. And they will pick their friends.

will USA “printing” $trillions for Covid19 Aid cause problems in near future? USA quit backing its $ with gold years ago. Managed to peg $ to buying oil anywhere, so could “print$” without backup, but recent “printing Monopoly Money” look overdoing it. Any Comments?

ONE WORD LAW

For once, I agree. You can't grow with the USD at these levels.

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Fed chair Powell: Economy may need 'more support' for robust recovery - Business InsiderFed Chair Jerome Powell says the economy may 'need more support' for a robust recovery to be possible How much more support? You have been in emergency mode since 2008 and doing nothing but lying to us. I can hear the money printer go brrr
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