Fed Chair Powell to Congress: Issue More Aid Money or Risk Foreclosure Wave

Many Federal Reserve presidents and governors have spoken this week, and Fed Chair Powell has testified to Congress. They told the same story. The Fed has done its job, now it’s time for Congress to get off the dime.  Fed Chair Powell went going further, explaining to the Senate Banking Committee that if they don’t act, they could potentially cause a wave of foreclosures across the country.

Consumers are spending today, but with almost 30 million people still collecting continuing unemployment benefits, we clearly haven’t put everyone back to work. As the previous relief package money runs out and homeowners come out of mortgage payment forbearance and deferral programs, we could be looking at a very ugly situation.

Powell said:

“That is the downside risk of no further action. We don’t see much of that yet, but it could well be out there in the not-too-distant future.”

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