United States Federal Reserve Chairman Jerome Powell wants more US
congressional support to shore up the economy, he said Wednesday. He
also warned the coronavirus could cause deep economic damage. His
comments - and a major shift in a US retirement fund - sent markets
lower.
The Dow Jones Industrial Average fell 2.17 percent to close a 23,247.97. The widely used gauge of US retirement and education savings accounts, the S&P 500, lost 1.75 percent, to 2,820. The Nasdaq Composite Index dropped 1.55 percent to 8,863.17.
While Powell pledged in a webcast to use the US central bank's power as needed, he suggested that it might not be enough to avoid deep economic damage without more fiscal support. Powell's comments added more pressure on US lawmakers to take steps to protect US workers.
"The Fed's efforts amount to a temporary bridge loan to the private sector, but as time goes on, liquidity issues can morph into insolvencies. Long-term and large-scale business insolvencies can create long-term scars to the economy and the labor market," wrote Oxford Economics' Kathy Bostjancic in a research note.
Read more at: Dow falls as US central banker offers a sombre view of economy | Coronavirus pandemic News | Al Jazeera
The Dow Jones Industrial Average fell 2.17 percent to close a 23,247.97. The widely used gauge of US retirement and education savings accounts, the S&P 500, lost 1.75 percent, to 2,820. The Nasdaq Composite Index dropped 1.55 percent to 8,863.17.
While Powell pledged in a webcast to use the US central bank's power as needed, he suggested that it might not be enough to avoid deep economic damage without more fiscal support. Powell's comments added more pressure on US lawmakers to take steps to protect US workers.
"The Fed's efforts amount to a temporary bridge loan to the private sector, but as time goes on, liquidity issues can morph into insolvencies. Long-term and large-scale business insolvencies can create long-term scars to the economy and the labor market," wrote Oxford Economics' Kathy Bostjancic in a research note.
Read more at: Dow falls as US central banker offers a sombre view of economy | Coronavirus pandemic News | Al Jazeera
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