Fed’s Mester Asks Congress for Recovery Help, Says ‘Downside Risks’ to the Economy Are on the Rise

  • Cleveland Fed President Loretta Mester said “downside risks” have increased for the economy.
  • She called on Congress to provide more fiscal help and said the Fed is ready to do more if needed.

Cleveland Federal President Loretta Mester called Wednesday for more help from Congress and said the central bank stands at the ready to provide whatever resources it can to help an economy at risk from rising coronavirus cases.

A spike in cases among hotspots across the U.S. has increased dangers to an economy that slumped nearly 33% in the second quarter on an annualized basis.

However, Mester said in a speech to the Liberal Arts Macroeconomic Conference that the threat posed from the virus “does not mean we are helpless.”

“The actions we take can help control the virus and thereby change the impact of the virus on the economy,” said Mester, a voting member of the policymaking Federal Open market Committee.

www.cnbc.com/2020/08/05/coronavirus-recovery-feds-mester-says-downside-risks-to-economy-on-the-rise.html