Fed’s Williams Says Lack of Fiscal Aid Could Challenge Economy
Federal Reserve Bank of New York President John Williams said Wednesday that if elected leaders don’t deliver new aid for the economy, the path of the recovery will likely be slower than if help were provided.
纽约联邦储备银行(Federal Reserve Bank Of New York)行长威廉姆斯(John Williams)周三说，如果当选领导人不为经济提供新的援助，复苏的道路可能会比提供帮助时慢。
Fiscal aid has “been a critical part of why the economy has recovered as well as it has,” Mr. Williams said in a virtual appearance at an event held by the Society for Advancing Business Editing and Writing, a journalists’ association.
威廉姆斯在记者协会先进商业编辑与写作协会(Society For Advance Business Editing And Writing)举办的一场活动上虚拟露面时说，财政援助“一直是经济复苏的关键部分”。
“When that money runs out and some of these programs expire, I think that cuts off some of the support that small businesses and households were getting, and that’s going to slow the economy over coming months,” Mr. Williams said. He added that the recovery so far has been uneven but much stronger than expected.
Without a renewal of this aid, the economy will face additional challenges in the coming months, Mr. Williams said.
He did add, however, that news of effective coronavirus vaccines gives him hope for the economic outlook.
Mr. Williams, who also serves as vice chairman of the rate setting Federal Open Market Committee, didn’t suggest any new actions were coming from the central bank. Fed officials have pegged their short-term rate target at near zero and indicated that level will be there for years to come, as they press ahead with large amounts of bond buying.
威廉姆斯同时也是制定利率的联邦公开市场委员会(Federal Open Market Committee)副主席，他并未暗示美联储将采取任何新行动。美联储官员已将短期利率目标固定在接近于零的水平，并表示，随着他们推进大规模债券购买计划，这一水平将在未来几年内保持不变。
Like many Fed officials, Mr. Williams indicated government aid of the sort that replaces programs that expired several months ago would be a big boost to the economy. But so far, elected leaders have failed to deliver that help. On Tuesday, Fed Chairman Jerome Powell said he thought it “likely the economy will continue to need support from both monetary policy and fiscal policy.”
Mr. Williams was upbeat about the power the Fed had to continue bolstering the recovery effort, and suggested that even if the Fed maintains the current scope of support, it will make a meaningful contribution to the effort.
“Our commitment throughout has been to use all of our available tools to support a strong economy, get the economy back to full strength,” Mr. Williams said. “For us, you know, a key part of this is really making sure that we’re providing, that we’re doing our part to provide monetary policy support, and our other programs as well, and keeping, you know, basically keeping financial conditions as supportive of a strong economic recovery as possible,” he said.
In separate comments Wednesday, the leader of the Richmond Fed, Thomas Barkin, said that when it comes to the kinds of stimulus the Fed can give the economy, “our powers are limited. And they’re focused on either rates and asset purchases, and in some of these emergency backstop facilities.”
Mr. Barkin added that “we may have a challenging few months ahead of us. But we also see daylight on the horizon,” in large part because of the coronavirus vaccine developments.