Powell Warns of Delay in Reaching an Additional Stimulus Package

Federal Reserve Chairman Jerome Powell has warned that failure to provide more government aid to families threatens a wave of mortgage defaults and evictions of Americans from their homes.

During his testimony before the Senate Banking Committee, Powell said that American household spending currently may depend on the use of the remaining funds from the $ 2.3 trillion package that Congress approved last March.

Powell’s warnings came in the context of his affirmation of the need to pass the additional stimulus package, amid the continued stalemate in negotiations between members of Congress on the deal aimed at supporting the economy from the repercussions of the pandemic.

And the president of the federation said: The risk is that citizens will use this money, and in the end, they will have to cut back spending and may lose their homes.

He added that this is the downside risk that may result from not taking more stimulus measures.