The Federal Reserve’s monetary policy amid economic and financial system impacts of the coronavirus (COVID-19) pandemic will be discussed by Fed Chair Jerome H. (“Jay”) Powell June 16 and June 17 during Senate and House committee hearings on the Fed’s semiannual monetary policy report to Congress.
Powell, testifying before the Senate Banking Committee and House Financial Services Committee, is expected to field a variety of questions on Fed actions to help ensure continued liquidity and loans to businesses and households affected by the pandemic. The Fed has created several facilities for this purpose and, according to reports, is also considering purchases of Treasury securities to implement “yield caps” in order to keep interest rates low.
The Fed’s monetary policy setting arm, the Federal Open Market Committee (FOMC), is set to meet on the federal funds target rate (currently at a range of 0 to 0.25%) and other monetary policy actions Tuesday and Wednesday, with results released Wednesday afternoon.
The Senate Banking hearing, “The Semiannual Monetary Policy Report to the Congress,” is set for 10 a.m. June 16; the House Financial Services hearing, “Monetary Policy and the State of the Economy,” is set for noon June 17. Both are being conducted remotely and will be webcast live.