THE DOW DOWN BETTER THAN 505

POINTS.

TO EDWARD LAWRENCE, HOW THE FED

CHAIRMAN, MAYBE HIS MUSINGS

MOVED THIS SOUTHWARD.

WHAT DO YOU THINK, EDWARD?

REPORTER: EXACTLY.

SOME OF THOSE YOU TICKED OFF

THERE, THE ECONOMY NOT REOPENING

IN THOSE VARIOUS AREAS IS NOT

THE ROAD TO RECOVERY THE FED

CHAIRMAN WAS TALKING ABOUT.

HE SAYS WE'RE IN THE WORST

RECESSION SINCE WORLD WAR II.

HE HAS SEEN SEVERE DECLINE IN

ECONOMIC ACTIVITY WITH JOB GAINS

ERASED OVER THE PAST DECADE WE

HAD, CALLING THE CORONAVIRUS THE

LARGEST SHOCK IN HISTORY.

THE POWELL SAYS THE ECONOMIC

FUNDAMENTALS WERE STRONG GOING

INTO THIS.

THERE WAS NO BUBBLE THAT CAUSED

THIS DOWNTURN.

THE VIRUS REALLY WAS THE VIRUS.

POWELL SAYS THE FED WILL TAKE

FURTHER ACTION SAYING THIS IS

NOT THE FINAL CHAPTER RELATED TO

ESTIMATE LAWS BECAUSE HE SAYS WE

NEED TO AVOID A WEAK RECESSION

OR A WEAK RECOVERY AND PROLONGED

RECESSION.

LISTEN.

>> THE RESULT COULD BE AN

EXTENDED PERIOD OF LOW

PRODUCTIVITY GROWTH AND STAGNANT

INCOMES.

WE OUGHT TO DO WHAT WE CAN TO

AVOID THESE OUTCOMES.

THAT MAY REQUIRE ADDITIONAL

POLICY MEASURES.

AT THE FED WE WILL CONTINUE TO

USE OUR TOOLS TO THEIR FULLEST,

UNTIL THE CRISIS HAS PASSED AND

THE ECONOMIC RECOVERY IS WELL

UNDERWAY.

REPORTER: YOU HEARD IT THERE,

FULLEST EXTENT UNTIL THE

ECONOMIC RECOVERY IS WELL

UNDERWAY, A SIGNAL FEDERAL FUNDS

RATE MAY STAY NEAR ZERO FOR SOME

PERIOD OF TIME.

POWELL HAS BEEN SAYING THIS IS

THE FASTEST AND LARGEST FISCAL

RESPONSE SINCE WORLD WAR II,

CALLING REACTION TO PROTECT THE

ECONOMY SWIFT AND FORCEFUL.

HOPES SMALL BUSINESSES COULD BE

SAVED.

SMALL BUSINESSES WILL BE A

SIGNAL HOW ROBUST THE RECOVERY

WILL BE.

IF YOU DON'T LOSE SMALL

BUSINESSES YOU DON'T LOSE JUST

JOBS, YOU LOSE DECADES ENGINE

NEWT YOU CAN'T REPLACE.

HE SEES UNEMPLOYMENT RATE

PEAKING NEXT MONTH BUT SEE AS

SHARP DECLINE BUT WE'LL BE ABOVE

THE 3 1/2% WE HAD INTO IT.

HE SAYS WE CAN GET BACK TO THE

3 1/2% BUT HE SAYS WE HAVE TO

GET ON THE ROAD TO RECOVERY AND