Kashkari says Congress will have to send Americans more money

U.S. lawmakers will have to do more to support Americans financially in the coming months, Minneapolis Fed President Neel Kashkari said.

“They are going to need more. If this is a slow recovery, the way I think it is — I think we’re in this for months, a year, 18 months — there are going to be a lot of families that are going to need direct financial assistance,” Kashkari said Thursday during a virtual event with CBS. “I think a V–shaped recovery is off the table.”

Federal Reserve Bank of Minneapolis President Neel Kashkari
Federal Reserve Bank of Minneapolis President Neel Kashkari

His call for congressional action follows those from Fed Chair Jerome Powell, who warned Wednesday that downside risks facing the U.S. economy may necessitate more aid. Democrats and Republicans are currently debating another round of relief to follow the almost $3 trillion that has been authorized since March.

“Putting money directly in the hands of laid-off Americans is, I think, the most direct way to get assistance, and then they will spend the money where they need it,” Kashkari said. “I just think money in the pockets of people who have lost their jobs is what we need right now until we can get the health care system to catch up and get control of this virus.”

Almost 40% of households making $40,000 a year or less lost a job in March, according to results of a Fed survey published earlier Thursday in Washington.

Bloomberg News
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