The Week Ahead: Fiscal stimulus diplomacy
Jerome Powell needs to be an ambassador as much as he is a central banker when he appears on Capitol Hill in the week ahead.He is scheduled to testify before the Select Subcommittee on the Coronavirus Crisis on Wednesday. This will be the first time this group has heard from the Federal Reserve chairman. And his appearance comes a week after the central bank indicated it expects to keep its key interest rate at zero for at least two more years.Powell didn’t come right out and say that, though. Instead, the interest rate-setting committee said it would keep rates where they are until inflation ...
The Week Ahead: Pandemic, partisanship and pressure for more stimulus
Last week’s market swoon didn’t burst the optimism of stock investors. But if it continues in the week ahead, it will press Congress to move on a stalled coronavirus economic stimulus package.Let’s be clear: The inability of Congress to make any meaningful moves on providing additional support to the U.S. economy battling a pandemic is about politics, not policy. The Democratically controlled House OK’d an additional $3 trillion package in May. Senate Republicans proposed their own set of plans in July. There is some common ground — $1,200 stimulus checks — but not much else.There has been som...