What should you be watching in the markets?
The major indices were falling in intraday trading after Federal Reserve Chair Jerome Powell spoke about the long road that we still have ahead of us.
“The recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems,” Powell said Wednesday in a webcast hosted by the Peterson Institute for International Economics in Washington. “Additional fiscal support could be costly, but worth it if it helps avoid long-term economic damage and leaves us with a stronger recovery.”
The U.S. central bank has taken aggressive measures during the pandemic, and Powell has said previously the Fed will use its "full range of tools" to shore up the U.S. economy.
However, negative interest rates seem to be off the table. Powell said that the Fed wasn’t considering negative interest rates “for now.”
Powell also 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.”
When asked about the markets, Jim Cramer said, “People do not understand the way the market works.“
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