jerome h powell : semiannual monetary policy report to the congress testimony by mr jerome h powell, chair of the board of governors of the federal reserve system, before the committee on banking, housing, and urban affairs, us senate, washington dc, 16 june 2020. * * * chairman crapo, ranking member brown, and other members of the committee, thank you for the opportunity to present the federal reserve ’ s semiannual monetary policy report. our country continues to face a difficult and challenging time, as the pandemic is causing tremendous hardship here in the united states and around the world. the coronavirus outbreak is, first and foremost, a public health crisis. the most important response has come from our health - care workers. on behalf of the federal reserve, i want to express our sincere gratitude to these dedicated individuals who put themselves at risk, day after day, in service to others and to our nation. current economic situation and outlook beginning in mid - march, economic activity fell at an unprecedented speed in response to the outbreak of the virus and the measures taken to control its spread. even after the unexpectedly positive may employment report, nearly 20 million jobs have been lost on net since february, and the reported unemployment rate has risen about 10 percentage points, to 13. 3 percent. the decline in real gross domestic product ( gdp ) this quarter is likely to be the most severe on record. the burden of the downturn has not fallen equally on all americans. instead, those least able to withstand the downturn have been affected most. as discussed in the june monetary policy report, low - income households have experienced, by far, the sharpest drop in employment, while job losses of african americans, hispanics, and women have been greater than that of other groups. if not contained and reversed, the downturn could further widen gaps in economic well - being that the long expansion had made some progress in closing. recently, some indicators have pointed to a stabilization, and in some areas a modest rebound, in economic activity. with an easing of restrictions on mobility and commerce and the extension of federal loans and grants, some businesses are opening up, while stimulus checks and unemployment benefits are supporting household incomes and spending. as a result, employment moved higher in may. that said, the levels of output and employment remain far below their pre - pandemic levels, and significant uncertainty remains about the timing and strength of the recovery. much of that economic uncertainty comes from uncertainty about the path

basis, names and details of participants in each such facility ; amounts borrowed and interest rate charged ; and overall costs, revenues, and fees for each facility. we embrace our responsibility to the american people to be as transparent as possible, and we appreciate that the need for transparency is heightened when we are called upon to use our emergency powers. we recognize that our actions are only part of a broader public - sector response. congress ’ s passage of the cares act was critical in enabling the federal reserve and the treasury department to establish many of the lending programs. the cares act and other legislation provide direct help to people, businesses, and communities. this direct support can make a critical difference not just in helping families and businesses in a time of need, but also in limiting long - lasting damage to our economy. i want to end by acknowledging the tragic events that have again put a spotlight on the pain of racial injustice in this country. the federal reserve serves the entire nation. we operate in, and are part of, many of the communities across the country where americans are grappling with and expressing themselves on issues of racial equality. i speak for my colleagues throughout the federal reserve system when i say, there is no place at the federal reserve for racism and there should be no place for it in our society. everyone deserves the opportunity to participate fully in our society and in our economy. we understand that the work of the federal reserve touches communities, families, and businesses across the country. everything we do is in service to our public mission. we are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible. thank you. i am happy to take your questions. 3 / 3 bis central bankers'speeches