Fed Chair Powell to testify economic recovery has 'progressed more quickly' than expected


Federal Reserve Chair Jerome Powell will tell the House Committee on Financial Services on Tuesday that the United States' economic recovery has "progressed more quickly than generally expected and looks to be strengthening" despite the coronavirus pandemic.
The Fed on Monday published Powell's opening testimony ahead of Tuesday's hearing on COVID-19 relief. It's mostly optimistic and consistent with the message Powell has been trotting out over the last year. He will note that "while the economic fallout" of the pandemic "has been real and widespread, the worst was avoided by swift and vigorous action — from Congress and the Federal Reserve, from across government and cities and towns, and from individuals, communities, and the private sector."
Still, he cautions there are reasons for concern, especially in sectors of the economy most heavily affected by the virus and the subsequent need for greater social distancing. He will also reiterate his previous warning that the already-elevated 6.2 percent unemployment rate "underestimates the shortfall, particularly as labor market participation remains notably below pre-pandemic levels." Read the full testimony here.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
Texas declares end to measles outbreak
Speed Read The vaccine-preventable disease is still spreading in neighboring states, Mexico and Canada
-
RFK Jr. shuts down mRNA vaccine funding at agency
Speed Read The decision canceled or modified 22 projects, primarily for work on vaccines and therapeutics for respiratory viruses
-
Measles cases surge to 33-year high
Speed Read The infection was declared eliminated from the US in 2000 but has seen a resurgence amid vaccine hesitancy
-
Kennedy's vaccine panel signals skepticism, change
Speed Read RFK Jr.'s new vaccine advisory board intends to make changes to the decades-old US immunization system
-
Kennedy ousts entire CDC vaccine advisory panel
speed read Health Secretary RFK Jr. is a longtime anti-vaccine activist who has criticized the panel of experts
-
RFK Jr. scraps Covid shots for pregnant women, kids
Speed Read The Health Secretary announced a policy change without informing CDC officials
-
New FDA chiefs limit Covid-19 shots to elderly, sick
speed read The FDA set stricter approval standards for booster shots
-
US overdose deaths plunged 27% last year
speed read Drug overdose still 'remains the leading cause of death for Americans aged 18-44,' said the CDC