Powell: COVID-19 Surge is Slowing Recovery

The Chairman of the US Federal Reserve, Jerome Powell, said on Wednesday that the rise in COVID-19 cases across many states and preventive measures to contain the virus outbreak are affecting the economic recovery.

“We have seen some signs in recent weeks that the increase in virus cases and the renewed measures to control it are starting to weigh on economic activity.”

Powell further noted that the US has entered a new phase in containing the virus, which he believes is essential to protect both public health and the country’s economy.

“We are committed to using our full range of tools to support our economy in this challenging environment,” the Fed Chair told reported during a press conference following the release of the Federal Open Market Committee (FOMC) statement.

The United States Federal Reserve announced on Wednesday that the latest FOMC meeting has decided to maintain the target range for the federal funds rate at 0% to 0.25%.