Yellen, Powell tell Senate U.S. economy recovering faster than expected

Treasury Secretary Janet Yellen will appear before the Senate banking committee on Wednesday, along with Federal Reserve Chairman Jerome Powell, to update lawmakers on the state of the U.S. economic recovery. File Photo by Kevin Dietsch/UPI

March 25 (UPI) — Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell, two of the top fiscal experts in the United States, told the Senate on Wednesday that the U.S. economy has recovered from the COVID-19 pandemic faster than expected.

Despite the positive outlook, though, the two warned full recovery is still a ways off.

Wednesday’s hearing was the second half of congressional testimony from the two top officials that’s focused on the federal response to the coronavirus crisis. They testified in the House on Tuesday.

“The recovery is far from complete,” Powell said. “So at the Fed, we will continue to provide the economy the support that it needs for as long as it takes.”

Yellen offered her support for economic stimulus packages, such as the one signed by President Joe Biden last week. She said federal aid should be withdrawn gradually as the economy and employment recovers.

“Longer-run, we do have to raise revenue to support permanent spending that we want to do,” she said.

“While unemployment remains high, it’s important to provide the supplementary relief.”


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