Jerome H Powell: Opening remarks for the Fed Listens panel on the
COVID-19 pandemic
Opening remarks (via webcast) by Mr Jerome H Powell, Chair of the Board of Governors of the
Federal Reserve System, at "A Fed Listens Event: How Is COVID-19 Affecting Your
Community?", sponsored by the Board of Governors of the Federal Reserve System,
Washington DC, 21 May 2020.
* * *
Good afternoon. I just want to say a few words of welcome and thank everyone for being here-
albeit in much different circumstances than would otherwise be expected.
We've held many Fed Listens events over the past 16 months, and it's important to note that
these conversations aren't just a nice way to talk to people from around the country, although
they are that. What they provide-what you provide-is insight that we just can't get anywhere
else. You add depth and definition to the flood of data that flows through the Fed each day. You
give us perspective on the economic realities that don't show up on a spreadsheet. You help us
see those complex sets of data that analyze the American economy through the eyes of the
people, businesses, and communities that make up the American economy. And that information
is very helpful to us as we make our policy decisions.
So this is a valuable exercise for us. And an enjoyable one as well, so we truly do appreciate it on
a number of levels. The Reserve Banks are also continuing to host conversations in
communities across the country to help capture economic realities on the ground.
We are in the midst of an economic downturn without modern precedent. It was sudden, and it is
severe. It has already erased the job gains of the past decade and has inflicted acute pain across
the country. And while the burden is widespread, it is not evenly spread. Those taking the brunt of
the fallout are those least able to bear it.
The pain of this downturn is compounded by the upending of normal life, along with great
uncertainty about the future. In the best of times, predicting the path of the economy with any
certainty is difficult. John Kenneth Galbraith famously said that economic forecasting exists to
make astrology look respectable. We are now experiencing a whole new level of uncertainty, as
questions only the virus can answer complicate the outlook.
Policies that address the resumption of economic activity are the province of elected officials at
all levels of government, in close consultation with public health and medical professionals. But
all of us have our own decisions to make as well, and those decisions will depend on public
confidence that it is again safe to undertake various activities. From an economic perspective,
we hope to learn a lot from your experiences and from what you're hearing from your colleagues,
customers, and communities: How they're coping with that uncertainty now, how they're thinking
about a future that's harder to plan for, and what matters most as they navigate the path.
The feedback we get from our community and business contacts has always been crucial in
how we conduct monetary policy. In extraordinary times such as these, it takes on even greater
importance. I want to thank you again for providing that insight and look forward to the
conversation.
Thank you.