It seems like a weird idea, but the man who controls the printing press in the U.S. is crying for Congress to hand out more cash.
In a speech to the National Association for Business Economics, Fed Chair Jay Powell continued his current theme of demanding that Congress step up its support of the economy by authorizing more cash for businesses and households.
In his prepared remarks he said:
“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses. By contrast, the risks of overdoing it seem, for now, to be smaller. Even if policy actions ultimately prove to be greater than needed, they will not go to waste.”
The “recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods.”
Powell went on to point out that Americans are now spending more than their take-home pay, which implies that we’re eating through the savings we built up during the early months of the pandemic when the federal government was sending out weekly unemployment bonus checks. By the end of the year, things could be pretty ugly.
Unless, of course, Congress approves another $1 trillion-plus cash infusion.
One day deficits will matter again. Apparently, that’s not the case today.