(FEDERAL RESERVE CHAIRMAN JEROME POWELL): "The second part will be the bounce back.
And you should see during that period the economy opening, stores opening all kinds of different economic entities opening and people going back to work.
We're seeing apparently the beginning of that." The U.S. economy indeed has started down the road of recovery.
That was the message Federal Reserve Chairman Jerome Powell delivered Tuesday to lawmakers in his twice-yearly economic update to Congress.
Powell divided the economy into three stages: Stage one was the economic shutdown... And stage two is what's happening now.
"We would expect to see large numbers of people during this period coming back to work during this second period of the call it the bounce back or the beginning of a recovery.
And I would say this morning's retail sales number is more evidence that that first of all, that the legislation that you passed, both the PPP and the unemployment insurance and the checks that were sent out, all of that is supporting demand." Stage three is a full economic recovery, but Powell warned that won't happen until the public is confident the novel coronavirus is contained.
"All of this assumes that the virus remains reasonably well, under control and doesn't experience , you know, an event where the virus rises widely across the nation." The health crisis and the resulting economic fallout has disproportionately hit lower income and black Americans the hardest.
And with the road to recovery likely to be long and uncertain, Powell was asked by many senators, how can the Fed help address the economic disparities between black and white Americans - Powell responded this way: "What we learned during the last long expansion is that a tight job market is probably the best single thing that the Fed can do to support gains by all low and moderate income communities, and particularly for minority communities who are heavily represented in this group.
So, that's what we can contribute, as well as all the other things we do.
We try to model diversity and inclusion.
We try to model those values.
But we're very focused on maximum employment and getting there as fast as we can." In an effort to do just that, the Fed chief vowed to keep interest rates near zero, and maintain the other extraordinary measures used to help the economic recovery along - and urged Congress to provide more aid to those hardest hit.
Federal Reserve Chairman Jerome Powell on Wednesday repeated his pledge to use a "full range of tools" to support the U.S. economy and keep interest rates near zero for as long as it takes to recover from the fallout from the coronavirus outbreak, saying the economic path will depend significantly on the course of the virus.
The US Federal Reserve is expected to remain apolitical and stay out of the business of Congress. Even so, President Donald Trump has repeatedly jeered at Fed Chair Jerome Powell, even going so far as to call him 'an enemy of the state.' Nevertheless, Business Powell stuck his neck out in a Congressional hearing this week, calling for more government intervention in the economy.
Federal Reserve Chair Jerome Powell on Tuesday testified before the Senate Banking Committee and said that the U.S. economy appears to be entering the second phase of reopening assuming the virus remains under control.
Layoffs in the United States are abating, but millions who lost their jobs because of COVID-19 continue to draw unemployment benefits, suggesting the labor market could take years to heal from the pandemic even as businesses resume hiring workers. Conway G. Gittens breaks down the numbers.
The chief of Bihar police commented on the progress in the investigation into actor Sushant Singh Rajput's death. DGP Gupteshwar Pandey said that the probe team visiting Mumbai was yet to receive important documents like forensic and autopsy reports from Maharashtra police. He added that he's sure that Mumbai cops will cooperate in the probe and the case will move further when such information and documents are received. A day earlier, Bihar deputy CM Sushil Kumar Modi had alleged that Maharashtra government was under pressure from a Congress-backed 'Bollywood mafia' to let those involved in the Sushant case go scot-free. The Bihar police is also looking for Siddharth Pithani, Sushant's flatmate, who had earlier written to the Mumbai police that the late actor's family was pressurising him to give a statement against Rhea Chakraborty. Sushant Singh was found dead at his Mumbai house on June 14. His father has accused his girlfriend Rhea of wrongfully confining him and also taking crores of Rupees from him.
Credit: HT Digital Content Duration: 03:11Published
Congress leader PC Sharma on August 01 said that he has tested positive for coronavirus. In a self-made video, the former minister in Kamal Nath government in Madhya Pradesh, said, "I have tested positive for COVID-19. I am healthy for now and undergoing medical treatment at Chirayu Hospital. I appeal to all who met me to get tested and quarantine themselves."
According to CNN, Democratic Presidential Candidate Joe Biden has started to narrow down his personal list of potential running mates. A handful of women remain in consideration for Biden's VP spot. Biden allies, members of Congress, and top donors, and those close to the vetting process says that California Rep. Karen Bass is believed to be part of the list. Bass is also a 66-year-old chair of the Congressional Black Caucus.
The BJP is gunning for the resignation of the Rajasthan Speaker after a video of him discussing the political situation in the state went viral. In the video, which cannot be independently verified by Hindustan Times, the Speaker is seen telling CM Gehlot's son Vaibhav that if 30 MLAs had left from the camp, the situation could have been serious. Sachin Pilot, who has rebelled against the Gehlot government, had initially claimed that he enjoys the support of 30 Congress MLAs. Later the Speaker had sent disqualification notices to Pilot and his 18 loyalist MLAs. BJP state chief Satish Poonia said that the video proves beyond doubt that the Speaker is supposed to be impartial but the video shows that he is leaning towards the Congress government. The video comes a day after the Speaker approached the Supreme Court against the Rajasthan High Court order which agreed to examine the constitutional validity of a provision in the anti-defection law and ordered status quo in the disqualification proceedings against Pilot and his loyalists. Watch the full video for all the details.
Credit: HT Digital Content Duration: 02:20Published
The World Bank and the Government of India on July 07 signed a loan agreement to enhance support for the Namami Gange Programme that seeks to rejuvenate the Ganga River. The USD 400 million operation comprises a loan of USD381 million and a proposed guarantee of up to USD 19 million. The agreement was signed between Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Qaiser Khan, Acting Country Director (India), on behalf of the World Bank. The guarantee instrument will be processed separately. The Second National Ganga River Basin Project will help stem pollution in the iconic river and strengthen the management of the river basin, which is home to more than 500 million people. Under the Namami Gange Programme, 313 projects have been sanctioned till March 2020 at a total cost of Rs 28,966 crore in different sectors. The National Ganga River Basin Project (NGRBP) is an important component of Namami Gange. A World Bank-funded National Ganga River Basin Project (Ganga -I) for an amount of USD600 million (Rs 4,535 crore) is currently ongoing and is approved up to December 31, 2021 for funding infrastructure projects of pollution abatement in the river Ganga. The loan would be for a period of five years up to December 2026. The World Bank has been supporting the government's efforts since 2011 through the ongoing National Ganga River Basin Project. The USD400 million operation includes a proposed guarantee of up to USD19 million to backstop the government's payment obligations for three Hybrid-Annuity-Model Public-Private Partnership (HAM-PPP) investments on the Ganga's tributaries.
Speaking on the participation of private entities in running passenger trains, Railway Board Chairman, Vinod Kumar Yadav on July 02 informed that 5 per cent of the trains have been offered to private players under Public-Private Partnership. "5% is being offered to private operators under Public-Private Partnership (PPP), 95% trains will be run by Indian Railways. Majority of trains will be manufactured in India. Private train operators will fix fare keeping in mind fares of airlines and AC buses," said Railway Board Chairman.
Equity benchmark indices swung nearly 1 per cent lower during the afternoon session on July 30 ahead of the expiry day of monthly futures and options contracts. At the closing bell, the BSE S and P Sensex was down by 335 points or 0.88 per cent at 37,736 while the Nifty 50 lost 101 points or 0.9 per cent at 11,102. Most sectoral indices at the National Stock Exchange were in the red except for Nifty pharma which gained by 3.1 per cent and IT which crawled up by 0.6 per cent. Nifty bank slipped by 2 per cent, financial service by 1.8 per cent and metal by 1.2 per cent. Among stocks, energy majors were big losers with Bharat Petroleum Corporation down by 8 per cent to Rs 417.80 per share. IndianOil Corporation dipped by 4.1 per cent, ONGC by 2.4 per cent and Power Grid Corporation by 2.3 per cent. Banking scrips too witnessed losses with IndusInd Bank dipping by 5.4 per cent, Axis Bank by 3.4 per cent and State Bank of India by 2.4 per cent while home loan lender lost by 3.6 per cent. Pharma stocks, however, witnessed handsome gains with Dr Reddy's advancing by 4.6 per cent to close at Rs 4,500 per share. Sun Pharma and Cipla were up by 3.7 per cent and 0.8 per cent respectively. Wipro, Infosys, Vedanta, Maruti Suzuki, Britannia and Reliance Industries too traded with a positive bias. Meanwhile, Asian stocks were flat as the US Federal Reserve members voted to leave the target range for short-term rates between 0 and 0.25 per cent to support the country's virus-battered economy. Japan's Nikkei and Hong Kong's Hang Seng were down by 0.26 per cent and 0.69 per cent but South Korea's Kospi moved up by 0.17 per cent.
US Senator Dick Durbin is requesting the Fed probe card networks and issuers, such as Mastercard and Visa. The senator wants an investigation over potentially anticompetitive fees. Durbin's letter hi-lighted that merchants are paying excessive debit card fees during the pandemic. The companies have planned major fee changes for US-based merchants. The Feds are requesting a competition-based investigating into Visa, Mastercard, and major issuers.
Spartan Capital Securities' Peter Cardillo expects the Fed to say it'll do "whatever it takes" to keep adding liquidity to the markets when policymakers meet this week. But he also tells Reuters' Fred Katayama that he thinks there's a good chance the markets will pull back, regardless of the Fed, because "the economy is faltering."