The Federal Reserve has been supporting the labor market for several months now and appears to be continuing to do that.
The U.S. economy needs more support than originally thought as a resurgence in the coronavirus pandemic weighs on growth, said Federal Reserve Bank of San Francisco President Mary Daly, “It’s becoming quite clear that the virus will be with us for longer and more vigorously than anyone had hoped for.”
The Federal Reserve continues to urge lawmakers to do more fiscal policy to support the U.S. economy.
Congress and the White House have until Friday before the Senate breaks to pass another stimulus bill.
The $3 trillion price tag Democrats want has been rejected by Senate Majority Leader Mitch McConnell, who last week put forward the Senate GOP plan that would cost roughly $1 trillion.
The sides appear to have moved toward a consensus on small business aid and stimulus checks but remain divided over unemployment insurance, aid to state and local governments and rent, mortgage and food assistance.
John Ryding, chief economic advisor at Brean Capital, talks about Federal Reserve policy and the coronavirus impact on the economy, inflation and his outlook for employment. He speaks on “Bloomberg Surveillance.”