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FX.co ★ Fed Chairman Powell calls for more stimulus, warning that the US economy still has a long way to go and could collapse at any given time.

Fed Chairman Powell calls for more stimulus, warning that the US economy still has a long way to go and could collapse at any given time.

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On Tuesday, Fed Chairman Jerome Powell warned that the US economy still has a long way to go before seeing a full recovery, and on top of that, it could collapse again at any moment.

Because of this, he called for extra vigilance and, accordingly, assistance from the government.

"If support is weak, recovery will be just as weak, which will create more difficulties. Fiscal policy and monetary policy must continue to work side by side to provide sustenance and support to the economy," he said.

Powell also mentioned the programs that the Fed introduced last spring, however, none of them has been fully implemented yet. One example is the trillions of dollars that should have gone to firms and credit markets, which, until now, remains only a potential.

Nonetheless, he remarked that the worst is over, because despite an incomplete recovery in demand, government loans and increased unemployment benefits have dampened the recession.

However, growth in jobs have slowed down amid recovery in business investment, and, if it continues, another recession could be provoked.

As of the moment. 22 million jobs have been lost since early March. The highest unemployment rate recorded in the United States was 11%.

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