Question

Listen to the interview with Jerome Powell, Chairman of the Federal Reserve System and discuss what he sees as the Fed's responsibility in response to Covid-19.

Answer 1

Chairman Jerome H. Powell Interview:

Introduction-

Basically he said that the federation is taking in three tools that can aid in pandemic

• Bringing stability and relief when there is shut down in economy
• A great push for expansion supporting
• To take all possible steps to control the damage it will have on the productive capacity of the economy

Steps taken by Federal-

• Generalised ones : To provide with emergency lending to businesses ,households, state and local government also supported banking customers by implementing temporary measures, unprecedent asset buying, also cutting down the rates
• Fiscal support : Was passing of three bills along with CARES ACT which gave almost $3 trillion i.e. most extensive step via fiscal policies since Great Depression
• Monetory support : The Paycheck Protection Program giving boost to demand for consumers and producers, also the finanacial markets are being seized untill the market does not come to its normal conditions

All these he said that has been done as per the responsibility of the federal to normalise the situation

Further possible risks -

• Cases might rise again though is under little control currently, and for same expert medical guidance and care is to be followed as public is updated time and again .
• And also this long break to economical activites if extended cam bring long and deep recession but they are trying to cover it with the fiscal and monetary policies

Conclusion -

These were in total the responsibilities of the federal in terms for maintaining welfare and safety to general public via fiscal and monetary policies

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