WASHINGTON – Two of the world’s most powerful central bankers said Thursday that economic risks from coronoviruses remain high, and cautioned against having too much confidence in a quicker recovery from a vaccine, a sign of US lawmakers Cool message that another stimulus package Not likely before the end of the year.
“The next few months can be challenging,” Federal Reserve Chair Jerome H. Powell During a webcast panel discussion, where he appeared alongside his European counterparts. The head of the European Central Bank, Mr Powell and Christine Lagarde, both warned that while recent progress toward a vaccine was welcome news, it was soon to write down the emerging risks to global recovery, as coronovirus cases globally. But has led to a fresh lockdown. Some jurisdiction.
“From our point of view, it is too soon to assess with any confidence the news’s implications for the path of the economy, especially in the near term,” Mr. Powell said.
On Monday, pharmaceutical company Pfizer announced encouraging results from its vaccine trials, propelling the stock markets to new heights. On Thursday, the stock cited some of its recent gains, with losses deepened after Mr. Powell and Ms. Legard spoke.
While Mr. Powell acknowledged the vaccine progress, he cautioned that “significant challenges and uncertainties” remain around time, production, distribution, and efficacy for different groups.
Ms. Legaard, explaining that she did not want to be “overjoyed” about the treatment, also reported “uncertainties – about logistics, about transportation, about rolling out, about construction” and how many people. Told about Vaccined in 2021.
The economic risk in the United States is acute as millions of people remain out of work, government aid has faded and the country records for virus cases and hospitalizations, prompting cities and states to impose new restrictions on activity Huh.
Prospects for another relief package before the end of the year dwindled on Thursday as Democrats and Republicans disagreed over the bill’s scope and cost and a top Republican indicated that Majority Leader Senator Mitch McConnell now plans to rely on the Treasury Were not making Secretary Steven Menuchin cut an agreement with the Democrats, reflecting his party’s combat capability that Mr Mnuchin was very keen on.
California Speaker Nancy Pelosi and New York Senator Chuck Schumer, Minority Leader in the Senate, Joseph R. To justify any package, citing Biden Jr.’s election as well as a record-breaking transition across the country. Much larger than what the Republican was suggesting.
But in holding on to their positions – Democrats asked for $ 2.4 trillion, which was the starting point Republicans had proposed a portion of that amount – Congressional leaders expected a year-end settlement But he appeared to close the door.
“My view, the level at which the economy is improving further, is that we need to do something about the amount of money put on the floor in September and October,” Mr. McConnell said, referring to the targeted $ 500 billion package. While telling reporters. The Senate Republicans tried to pass before the election.
Discussing the price tag of Ms. Pelosi and Mr. Schumer, she said, “There is no place I think we are ready to go, but I think there needs to be another package.”
Major support for displaced workers and laid-off businesses has come to an end, and while the savings have been used in the homes they built earlier in the year to keep up with their bills, there is a risk that many would meet Will struggle for nest eggs as they walk through them. Mr. Powell and his colleagues have clarified that more support will be needed, particularly when the epidemic accelerates changes in the economy – such as increased remote work and automation – and some workers are permanently displaced.
“We’re recovering, but for a different economy,” Mr. Powell said, warning that “a substantial group of workers” need support as they find their way into the pandemic economy, because it’s going to happen Is different from some basic methods. “
Mr. Powell said that while the United States’ recovery has been faster and stronger than anticipated and expected to continue, it has been uneven – and remains unfinished.
“The main risk we see is obviously further spread of the disease in the United States,” Mr. Powell said. “We have found new cases at a record level, we have seen many states start opposing limited activity restrictions again, and people may lose confidence that it is safe to go out.”
Ms. Pelosi and Mr. Schumer spoke on the phone with Mr. Biden on Thursday, later insisting that they “urgently need” Congress to provide bipartisan funds for the unemployed, workers, small businesses, the state, and support. I was on the same page. Local governments are facing huge budget shortfalls, and before the country’s health care system takes over. It was not clear how actively Mr. Biden, the incoming head of the party, would involve himself in the conversation before his inauguration.
Ms. Pelosi portrayed Republicans as “coldheads” for insisting on small relief packages and tried to overthrow them.
“It’s like the house is burning and they just refuse to throw water on it,” she said.
There were clear political changes in that message. Almost everything has been said in the halls of Congress these days, which, at least in part, appears to have been aimed at voters in a pair of runoff Senate elections in Georgia in January that would determine Senate control. Economists at Goldman Sachs suggested that Republicans may be eager to secure a deal before January 5. To avoid claiming that the Republican-controlled Senate helped prevent access to homes – but Democrats may not have much incentive to compromise, with that vote imminent.
“The political climate is no less favorable that it happened a week earlier,” Alec Phillips, a Goldman Sachs writer and his colleagues, wrote in a research note on Thursday. .
Both parties must reach an agreement on the critical spending law on December 11 to prevent a lapse in government funding, either an agreement on a dozen annual must-pass bills or another stopgap spending bill. There is a possibility that the legalists will wrap the additional relief amount into a larger package with that law.
“We want to have a streamlined or targeted stimulus bill, but we’ve got some support from the other side,” Senator Richard C. of Alabama, chairman of the Senate appropriation committee. Shelby said.
Senator Charles E. of Iowa Grassley, chairman of the Senate Finance Committee, suggested that Republicans were not in the mood to compromise, hinting that Mr. Mnuchin will no longer hold major talks with Ms. Pelosi.
“There has been no discussion between McConnell and Pelosi yet, but McConnell will no longer trust Mnuchin,” Grassley told reporters on Thursday morning. “I think he’s intending to take it and try to get something.”