Minneapolis Federal Reserve President Neel Kashkari was among the first to warn if monetary stimulus was stopped by saying that the risk could be huge.
Kashkari noted that workers, businesses and the government need more money from Congress. According to him, if the administration does not help the people who lost their jobs, it will have a bigger impact such as lack of spending and eventually to a worse economic downturn.
Discussions to get more funds from Washington were halted on Tuesday after President Donald Trump ordered a halt until after the November election. But Trump began to change his stance and demanded special funding for the aviation industry.
Prior to Trump's move, The Fed Chairman Jerome Powell stated that additional fiscal assistance was needed. On the other hand, Cleveland Fed President Loretta Meste noted that stimulus delays meant economic recovery would be slower.
Congress has so far approved a fund of more than $ 2 trillion, although most of that allocation has expired. The Fed, on the other hand, has lowered interest rates and implemented more loan programs and market functions than it should have.
