Fed Chair Admits Central Bank Engaged in ‘Extraordinary Monetary Policy’
Every once in a while, the truth slips out of Federal Reserve Chairman Jerome Powell’s mouth.
Powell was on Capitol Hill this week addressing Congress. He continued to talk up the economy, but in a moment of honesty, tacitly admitted that the central bank is already engaged in extraordinary monetary policy, and confessed the Fed may not have the firepower to fight the next recession. During testimony before the House Financial Services Committee, the Fed chair conceded that the current low level of interest rates “means that it would be important for fiscal policy to support the economy