London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

Yellen and Powell praise stimulus but warn that more needs to be done

Yellen and Powell praise stimulus but warn that more needs to be done

The two most powerful economic authorities in America told lawmakers that although the US economy is on the mend thanks to several rounds of stimulus, there's more work to be done.

Janet Yellen, the current Treasury secretary, and Jerome Powell, who succeeded Yellen as Federal Reserve chair during the Trump administration, each stressed in prepared remarks that the economic pain caused by the Covid-19 pandemic would have been worse if not for the quick moves in 2020 by Congress and the Fed.

"While the economic fallout has been real and widespread, the worst was avoided by swift and vigorous action," Powell said in a statement released by the Fed. But he also emphasized that "the recovery is far from complete, so, at the Fed, we will continue to provide the economy the support that it needs for as long as it takes."

Powell and Yellen spoke in front of the House Financial Services Committee Tuesday afternoon, and are both set to testify again before the Senate Banking Committee Wednesday morning.

Stocks, which were flat before the testimony began, fell during the hearing and were broadly lower in late afternoon trading.

The Fed slashed interest rates to zero last March and is widely expected to keep them near those historically low levels until next year — if not longer. The central bank also launched several lending programs for businesses.

That, coupled with the CARES Act from Congress and the Trump administration last year as well as a newly signed $1.9 trillion package signed by President Biden, have helped stabilize the job market and consumer spending.

"The recovery has progressed more quickly than generally expected and looks to be strengthening," Powell said.

Powell noted that the housing market "has more than fully recovered from the downturn" and that consumer spending on goods, business investment and manufacturing production have also picked up noticeably.

But Yellen, who is the first woman to serve as Fed chair as well as the first female Treasury secretary, urged lawmakers to do even more.

"We are meeting at a hopeful moment for the economy — but still a daunting one. While we're seeing signs of recovery, we should be clear-eyed about the hole we're digging out of," Yellen told Congress, according to her prepared remarks.

She noted that "the country is still down nearly 10 million jobs from its pre-pandemic peak" and that there are still "some very deep pockets of pain" in the economy, including millions of people who are behind on mortgage or rent payments and who don't have enough food to eat.

"I looked at data like these, and I worried that the Covid economy was going to keep hurting millions of people now and haunt them long after the health emergency was over," Yellen said.

She added that now that Biden's stimulus plan has been signed into law, she is working to make sure that small businesses in particular get more help fast.

"We have been expediting relief to the areas of greatest need," Yellen said, adding that "small businesses — and especially the smallest small businesses, which are disproportionally owned by women and people of color," were hit hard by the pandemic.

Yellen said Treasury is now working to make sure that Paycheck Protection Program funds reach "millions more microbusinesses and entrepreneurs, especially in rural and low-income areas."

The surge in stimulus spending has also led to some concerns, most notably among more fiscally conservative Republicans, that a rebounding economy will eventually lead to much higher inflation pressures.

Patrick McHenry, a Republican from North Carolina and ranking member of the committee, asked Powell if he was worried about the threat of inflation.

Powell said that there might be some "upward pressure on prices" but that he expected them to be "neither large nor particularly persistent." He said that even if there is a one-time consumer spending surge thanks to stimulus checks, that should not create longer-term inflation.

Comments

Oh ya 4 year ago
Well you can not pile the BS any higher than what these 2 are saying. If they want to cut the internet rate to zero then lets also cut the internet rate that the Fed (6 jew owned banks) gets paid for every dollar they print out of thin air and lend to the government. I believe the contract they signed in 1913 gives them either 3 or 4 % interest. Folks need to understand the Federal Reserve is as federal as Federal Express

Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×