⁍ The calls for increased government intervention came as U.S. lawmakers and the White House resumed talks on a new government relief package.
⁍ Without more government aid, Chicago Fed President Charles Evans said, ‘ aggregate demand trouble is brewing’
Without more government aid, Richmond Fed President Thomas Barkin said, ‘quickly pulling away the support that consumers and businesses are receiving would be a pretty traumatic move
– The US economy is in dire need of more government spending and tougher measures to stop the spread of Ebola, federal bankers said Monday. Chicago Federal Reserve President Charles Evans warned that without additional government spending, ” aggregate demand trouble is brewing,” Reuters reports. Richmond Fed President Thomas Barkin said pulling away the support that consumers and businesses are receiving would be “a pretty traumatic move for what’s happening in the economy.” Officials from the Federal Reserve Bank of Dallas, St. Louis Fed President James Bullard, and Minneapolis Fed President Neel Kashkari also called for people to wear masks to stop the spread of the virus. “I think we are going to have to learn to live with this virus. We are going to have to learn to re-engage in our daily activities but still control the virus,” Kaplan said. “Widespread mask-wearing is essential to that.” The central bank has cut interest rates to near zero in an effort to combat a recession that began in February.
Source: https://www.reuters.com/article/usa-fed/wrapup-2-fed-policymakers-call-for-fiscal-support-to-save-us-economy-idUSL1N2F5153