If the economy "really goes south," the Treasury Secretary "will go down in history as the man who took away a safety net when it was really needed.”
The central bank chair said fiscal stimulus is needed to help the economy recover from the effects of the coronavirus.
Overall, at least 77% of adults said they were at least “doing OK” in July, up from 72% in April.
“It’s a very deep and dark hole and we’re coming out of it, but it’ going to take a long time to get out.”
The bill, which includes payroll assistance and aid to state and local governments, faces a chilly reception in the Senate.
“We saw a risk to the outlook of the economy [from the coronavirus outbreak] and we chose to act," Fed Chair Jerome Powell says.
“We took this step to help keep the economy strong in the face of global developments and to provide some insurance against ongoing risks."
The Board of Governors voted 4-1 in favor of the changes, with the dissenter saying they would weaken core safeguards.
The Fed's move to grow its balance sheet comes after last month's “unexpectedly intense volatility” in the funding markets.
“For the foreseeable future, we’re going to be looking at doing the sorts of things we did the last two days," Fed Chair Jerome Powell says.
Fed members agreed, however, that they did not want to signal new cuts.
In Powell’s testimony to Congress, he said ‘crosscurrents’ have been weighing on economic activity and the central bank will ‘act as appropriate.’
