America’s top two economic officials told senators on Wednesday that the economy is healing but still in a deep hole and that continued government support is providing a critical lifeline to families and businesses.
The remarks by Jerome H. Powell, the Federal Reserve chair, and Janet L. Yellen, the Treasury Secretary and Mr. Powell’s immediate predecessor at the Fed, before the Senate Banking Committee echoed their testimony before House lawmakers on Tuesday.
Mr. Powell said in his remarks that the government averted the worst possible outcomes in the pandemic economic recession with its aggressive spending response and super-low Fed interest rates.
“But the recovery is far from complete. So at the Fed, we will continue to provide the economy the support that it needs for as long as it takes,” he said.
the recently passed $1.9 trillion relief package, said responding to a crisis with a needed surge of temporary spending without paying for it was “appropriate.”
“Longer-run, we do have to raise revenue to support permanent spending that we want to do,” she said.
She said expanded unemployment insurance, part of the recent relief package, does not seem to be discouraging work and is needed at a time when the labor market is not at full strength.
“While unemployment remains high, it’s important to provide the supplementary relief,” Ms. Yellen said, noting that the aid lasts until the fall. She said the aid should be phased out as the economy recovers.
The Biden administration is also making plans for a $3 trillion infrastructure package, and Republicans on the committee expressed concern about the mounting deficits facing United States.
stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.