Stocks were down in intraday trading on Wednesday after Federal Reserve chair spoke in a webcast hosted by the Peterson Institute for International Economics in Washington.
Powell said that the U.S. economy may need "additional fiscal support" to help "avoid long-term economic damage and leave us with a stronger recovery.”
“The recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems," he said. “Additional fiscal support could be costly, but worth it if it helps avoid long-term economic damage and leaves us with a stronger recovery.”
"While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks," he continued.
Slatestone Wealth senior wealth strategist Kenny Polcari joined TheStreet's Katherine Ross to talk about Powell's comments and his thoughts on whether or not the market should get its hopes up about negative interest rates, which Powell said that the Federal Reserve wasn't considering "for now."
You can follow Katherine Ross on Twitter at @byKatherineRoss.
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