Federal Reserve Chairman Jerome Powell will reaffirm that the central bank is committed to using all its resources to help the economy weather the coronavirus pandemic during a Senate hearing on Tuesday.
“We are committed to using our full range of tools to support the economy in this challenging time even as we recognize that these actions are only a part of a broader public sector response,” he said in remarks prepared to be delivered to the Senate Banking, Housing, and Urban Affairs Committee on Tuesday.
Powell is also scheduled to say that the Fed’s interest rate target will remain near zero until the crisis is gone.
“In March, we lowered our policy interest rate to near zero, and we expect to maintain interest rates at this level until we are confident that the economy has weathered recent events and is on track to achieve our maximum-employment and price-stability goals,” he is expected to say.
Powell is scheduled to testify with Treasury Secretary Steven Mnuchin before the Senate committee. The two are testifying because of an oversight provision in the recently enacted CARES Act that requires them to report to Congress the progress they have made in fulfilling the obligations of the legislation.
