Fed Chair Powell says emergency programs should be extended

Federal Reserve Chair Jerome Powell said it was not time to halt emergency programs that prevent the economy from collapsing amid the coronavirus pandemic. His comment came amid a surge in coronavirus cases, signalling that economic recovery is far from anticipated.

Extending the programs would require the approval of the Treasury under the Trump administration. Some Republicans in Congress have expressed their hesitation in keeping the programs open.

However, Powell and other Fed officials are worried about how contradictory perceptions about the U.S. economy may fuel a debate over policy response. 

U.S. coronavirus cases are rising by nearly 1 million every week, a rate of growth that prompted reluctant Republican state governors to require wearing masks in public places.

Powell said that news about effective vaccine trials was “certainly good”, but reminded that they won’t be widely available for months.