Senior Fed official warns failure to provide more COVID-19 relief could slow recovery

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Federal Reserve Bank of Chicago President Charles Evans said a failure by the White House and Congress to approve more coronavirus stimulus funding could reignite “recession dynamics” that will hamper post-recession recovery .In a speech on Monday, Evans said another economic bailout “will play an extremely powerful role” in helping struggling households and businesses survive until the coronavirus pandemic is under control. He added that sufficient aid, including support for state and local governments, would help unemployment fall from 7.9% in September to 4% by 2023.

Without additional help, Evans warned, “the dynamics of the recession will gain momentum and lead to a slower trajectory back to peak employment.”

Evans’ warning is the latest attempt by senior Fed officials to bring the White House and Congress closer to a long-sought deal on monitoring the CARES (Aid, Relief and Economic Security) Act of 2.2 trillions of dollars. President TrumpDonald John Trump Questions remain unanswered as White House casts optimistic outlook on Trump’s fight against COVID-19 White House staff receive email telling to stay home if they present coronavirus symptoms White House says ‘appropriate precautions’ have been taken for Trump exit to see MORE supporters signed at the end of March.

Economists credit the CARES Act for protecting the United States from some of the economic shock at the onset of the pandemic through expanded and improved unemployment benefits, direct payments to American households, emergency small business loans and a aid to states and local governments.

But the pace of the recovery has slowed as much as much of that aid expired and was drained from the economy over the summer. The virus also continued to spread across the United States, invading much of the South and the Solar Belt during the summer and in several northern and Midwestern states through the fall.

Speaker Nancy PelosiLawmaker Nancy PelosiGOP Asks Pelosi To Apologize For Response To Trump Contracting Coronavirus Pelosi: “We’re Making Progress” on Coronavirus Relief Bill What President Trump’s Positive COVID Test Could Mean for Markets MORE (D-Calif.) And Secretary of the Treasury Steven MnuchinSteven Terner MnuchinTrump Pushes For New Coronavirus Stimulus Deal: ‘GET IT DONE’ Trump Illness Sparks New Urgency For COVID-19 Deal On The Money: Economy Adds 661K Jobs In Final Report Before on polling day | House Approves .2T COVID-19 Relief Bill As White House Talks Stalled | Autonomous bill to relieve airlines stranded upstairs LEARN MORE, leading Democratic and Republican negotiators, appeared to be making progress on another deal over the past two weeks. Democrats have lowered their bid for another package to $ 2.2 trillion, and the administration has expressed support for a deal closer to $ 1.5 trillion.

Trump’s contraction of the coronavirus has also increased the urgency of reaching a deal before election day.

Senate Republicans, however, have expressed concerns over the approval of yet another bill worth more than $ 1 trillion as the national debt hits record highs.

Majority leader in the Senate Mitch McConnellAddison (Mitch) Mitchell McConnellTom Cotton: Coronavirus ‘arguably’ won’t stop SCOTUS candidate confirmation Toomey won’t run for re-election, Governor in 2022: Klobuchar sources call for postponement of Supreme Court hearing : “We don’t know how many other Republican senators had ‘COVID-19 PLUS (Ky.) And other senior GOP senators have warned that there is little support within the conference for another massive spending bill and prefer a more personalized approach to reopening businesses and schools. as quickly as possible despite the state of the pandemic.



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