WASHINGTON—The nation’s top two economic policy makers appeared virtually on Capitol Hill for their second day of joint testimony about the government’s efforts to restore the economy to health in the midst of the Covid-19 pandemic.
Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen testified before the Senate Banking Committee on Wednesday.
Their message to the panel was similar to the one they delivered Tuesday before the House Financial Services Committee: The economy is poised for a strong recovery, but reinvigorating the labor market will take time.
In prepared remarks for both hearings, Mr. Powell said the Fed “will continue to provide the economy the support that it needs for as long as it takes.” The central bank has held overnight interest rates near zero for the past year and doesn’t plan to raise them until the economy reaches full employment and inflation rises moderately above its 2% target.
Under the Cares Act relief package passed last March, the two officials are required to testify once a quarter on efforts to support the economy during the pandemic. Several of the largest programs created by the legislation wound down at the end of last year, however, giving lawmakers greater scope to raise wider policy issues.
