Former Federal Reserve leaders Ben Bernanke and Janet Yellen joined 100 economists in a statement Tuesday calling on congressional leaders to pass additional relief legislation this summer to help the nation survive the economic shutdown caused by the coronavirus.
“Given current projections of economic need, this new bill should provide, at a minimum, continued support for the unemployed, new assistance to states and localities, investments in programs that preserve the employer-employee relationship, and additional aid to stabilize aggregate demand,” the statement reads.
The statement also cautioned lawmakers to act boldly given the magnitude of the current crisis, and not passively, as they did during the Great Recession that ended in 2009.
“Insufficiently bold congressional policy responses to the Great Recession unnecessarily prolonged suffering and stunted economic growth. Congress should not make this mistake again,” the statement reads.
It does not provide examples for the legislative missteps Congress made during the Great Recession but states that “Congress should address this risk, and the already occurring economic damage, by passing, as soon as possible, a multifaceted relief bill of a magnitude commensurate with the challenges our economy faces.”
