The pace of the US economy's revival is still not stable, Fed Chairman Jerome Powell pinpointed. Speaking before the House Financial Services Committee, he said that the economy was recovering too slowly. Thus, it was too early to talk about any improvements.
Notably, this year, the US economy is struggling with a lot of bearish factors, namely the economic slowdown, presidential election, coronavirus, etc. Economists are now trying to predict the outcome of the election. Uncertainty over the future president of the country is weighing on the economy. "Economic activity has picked up from its depressed second-quarter level, when much of the economy was shut down to stem the spread of the virus. Many economic indicators show marked improvement,” he said. “Both employment and overall economic activity, however, remain well below their pre-pandemic levels, and the path ahead continues to be highly uncertain," Powell said. It means that the government, as well as the regulator, needs to make a real effort to get the economy back on track. "We remain committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible, and to limit lasting damage to the economy," Powell declared in his testimony.
Unlike many other countries, the US does not hide what is going on and reveal accurate data even if it is not as positive as it should be. "A full recovery is likely to come only when people are confident that it is safe to reengage in a broad range of activities. The path forward will depend on keeping the virus under control, and on policy actions taken at all levels of government," Jerome Powell added.
