Federal Reserve (Fed) chairman Jerome Powell warned lawmakers that the U.S. economy remains volatile despite positive developments on the Covid-19 vaccine.
In a note released Monday before Powell's testimony before the Senate Banking Committee tonight, Powell said the latest news on the vaccine is very positive for the medium term.
However, for now, challenges and uncertainties about vaccines remain, including on timing, production and distribution as well as effectiveness on various groups.
Powell also expressed concern over the resurgence of the coronavirus pandemic in the United States and around the world, saying it would bring challenges for the next few months.
However, he did not give any indication of how the bank would react to the concerns at the upcoming FOMC policy meeting scheduled for December 15-16.
Meanwhile, in a separate statement to be delivered at the same session, Treasury Secretary Mnuchin suggested that Congress reuse the unused $ 455 billion in funds for additional loan facilities.
