FED’S BULLARD: US HAS ALREADY DELIVERED ENOUGH FISCAL AID

Federal Reserve Bank of St. Louis President James Bullard said the U.S. economy has enough momentum to continue its recovery from the coronavirus slump even if Congress fails to pass additional taxpayer support.

“I don’t think there is as much of an imperative about a new fiscal package as there might have been” in July or August, Bullard said Monday in a Bloomberg Television interview with Kathleen Hays. “It seems like, at least in some broad macroeconomic type of calculation, we have enough resources to cover this.”

Bullard’s view contrasts with Fed Chair Jerome Powell, who has urged additional fiscal aid and sometimes put the message in dire terms, as well as other Fed officials. In congressional testimony to be delivered Tuesday, Powell said the U.S. faces a long recovery with a high degree of uncertainty surrounding the pandemic.

The U.S. economy may shrink 3%-4% this year, which is less than half of what was expected early during the crisis, so the $3 trillion in pandemic aid passed by Congress as well as the Fed’s easy monetary policy stance should help support growth during the recovery, Bullard said.

 
Source: Bloomberg