We also print actual currency and we distribute that through the Federal Reserve bank.”. The Fed increased its balance sheet by $2.8 trillion, or 60%, just since February of this year. When unemployment is low, when economic activity is high, that’s when you deal with that problem. Cohn also stressed the importance of getting the economy going again. There’ll be a, you know, big decline in economic activity, big increase in unemployment. And it’s going to take a while for us to get back. (Please note that in general I don’t necessarily agree with his comments, and in many cases disagree with them): SCOTT PELLEY, CBS NEWS / 60 MINUTES: There’s only one question that anyone wants an answer to, and that is: when does the economy recover?

The video of the Interview and transcript can be seen at “Federal Reserve Chairman Jerome Powell On The Coronavirus-Ravaged Economy.” Below are Jerome Powell’s comments I found most notable in the order they appear in the transcript. All Rights Reserved.

A digital store-of-value that is immutable, scarce, supply-capped, and non-sovereign resonates amongst investors embracing the emerging digital world. That’s not the case at all now.

5 out of 330,000,000.

It is true that deficits are going to be big for a couple of years here. The time to deal with that though is when we’re through this recovery. And so I think that kind of support may be appropriate. We have the most dynamic economy in the world. And as we sit here, 20 million people have lost their jobs in a period of really two months.

The U.S. economy will claw its way back from the current downturn but may need a coronavirus vaccine before that is complete, Federal Reserve Chairman Jerome Powell said. POWELL: Well, I would take a more optimistic cut at that, if I could, and that is: this is a time of great suffering and difficulty. This is something that shows up in the data — that longer and deeper recessions tend to leave behind damage to people’s careers. They’re considered temporarily unemployed. Unemployment will get back down. And that’s by keeping people and businesses out of insolvency just for maybe three or six more months while the health authorities do what they can do. And it’s heartbreaking because where we were just two months ago was we had the lowest unemployment in 50 years, the lowest African-American unemployment ever since we began measuring it.

Pelley later asked, “Has the Fed done all it can do?”, Powell responded, “There’s a lot more we can do. So in the long run, I would say the U.S. economy will recover. Editor's Note: On May 13, 2020, 60 Minutes correspondent Scott Pelley interviewed Federal Reserve Chairman Jerome Powell in the Board Room at the Federal Reserve headquarters in Washington, D.C. Below is the transcript of that interview. POWELL: Again, nobody knows. It could stretch through the end of next year. And we will.

We hope that it will be shorter than that, but no one really knows.

The time to deal with that, the time to get on a sustainable fiscal path, which really just means that the economy is growing faster than the debt, and that means you’ve got to control the growth of the debt — the time to do that is when the economy is strong.

Its assets are mainly the securities it purchased on the open market and loans it made to financial institutions and now businesses. Much harder with bitcoin,” remarked Marty Bent.

POWELL: You know, at the moment, the thing that matters more than anything else is the medical metrics, frankly.

In my writing, I explore how digital assets enable new use cases and their. So the banks have been strong so far. We want to hear from you.

© 2020 CNBC LLC. PELLEY: And for people who wonder whether they should take their money out of the bank and put it in a mattress, you tell them what?

And my sense is that it’s likely that we’ll have a couple more months of net job losses. In the long run, and even in the medium run, you wouldn’t want to bet against the American economy. This economy will recover. And that’s because they expect to go back to their old job. Do you consider the virus under control? We’ll see unemployment come down.

It is hard to envision a scenario in which such a large supply dump of dollars does not lead to inflation, and Bitcoin is poised to benefit from the tsunami.

It’s all the things associated with that.

The banks have been strong, they’ve been fine.

We can get back to a healthy economy fairly quickly. Wash their hands, wear masks in certain situations and things like that. We have highly industrious people.

We’ll get through this.

The Fed has launched a series of efforts to keep markets functioning properly and has teamed with the Treasury Department on a variety of lending programs aimed at businesses and individuals. And I wonder what they’re telling you the height of unemployment will be.

Then, assuming that the economy does begin to reopen and we do that successfully, you’ll see people going back to work. People will need to take certain measures to protect themselves.

The big thing we have to avoid during that period is a second wave of the virus.

The video of the Interview and transcript can be seen at “Federal Reserve Chairman Jerome Powell On The Coronavirus-Ravaged Economy.”. "Assuming there's not a second wave of the coronavirus, I think you'll see the economy recover steadily through the second half of the year," the central bank chief said.

But if we do, then the economy can continue to recover. POWELL: Well, I think we’re going to see what happens with that. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. More opportunity. However, Bitcoin is increasingly overtaking gold as the monetary inflation hedge of choice, especially amongst Generation X and Millennial investors. But I would just say this. PELLEY: Many states are beginning to reopen their economies. The Fed increased its balance sheet by $2.8 trillion, or 60%, just since February of this year. And I would say this is the time when we can use that strength to our longer run benefit.

Again, this is an economic shock that’s different and bigger than any in our lifetime. And very difficult to answer because it really does depend, to a large degree, on what happens with the coronavirus.

So the data we’ll see for this quarter, which ends in June, will be very, very bad. And we do that by buying treasury bills or bonds or other government guaranteed securities, and that actually increases the money supply.

The best examples of this are gold’s over-performance immediately following the end of the gold standard in 1971 and the first rounds of the Fed’s quantitative easing actions following the Great Financial Crisis of 2008.

POWELL: Well, if you take a longer perspective, the U.S. has been spending more than it’s been taking in for some time. But in a sense, the real-time economic data that we’re seeing is just a function of how successful the social distancing measures are.

Historically, gold served as the best hedge against monetary and fiscal exorbitance.

I am a VP of Digital Asset Strategy at Fundstrat Global Advisors. There’re some very fundamental differences. Bitcoin, crypto, and blockchain empower new business models and increase global coordination. Bitcoin has value despite the nonexistence of any central entity to dictate its monetary policy or backstop the system. No one knows how long the coronavirus pandemic will continue nor what its economic consequences will be.

US Federal Reserve Chairman Jerome Powell was on 60 Minutes and discussed the recent Fed actions to ... [+] stabilize the economy. You could say the same thing about businesses. There’s really no limit to what we can do with these lending programs that we have.”. While he sees a rebound coming in the second half of the year, he added that a full recovery may not happen without a coronavirus vaccine.

They’ve done all the things you would hope they would do. It should be a much shorter downturn than you would associate with the 1930s. U.S. Federal Reserve Chairman Jerome Powell appeared on 60 minutes May 17th discussing the Fed’s recent operations to stabilize the economy. "If we really want to get the people back to work that Chairman Powell was talking about, we need to reopen the economy," Cohn said. Fed Chairman Jerome Powell told "60 Minutes" that people shouldn't "bet against the American economy."

Jerome Powell gave his first interview to “60 Minutes” last (Sunday, March 10, 2019) night.

And that may have to await the arrival of a vaccine. We really don’t know. Travel, entertainment, things that we do that involve being around lots of other people.So for the economy to fully recover, people will have to be fully confident. And this is an outside event, it is a natural disaster, in effect.

“The ‘we’ here is five people voting on changes to monetary policy within the Federal Reserve system during FOMC meetings.

We’ll see GDP move back up after the very low numbers of this quarter. I don’t think that’s a likely outcome at all.

They’re so much stronger than they were before the financial crisis, the last financial crisis.

It will take some time to get there. Data is a real-time snapshot *Data is delayed at least 15 minutes. I write about the intersection of technology, economics, finance, politics, and crypto. Bitcoin, crypto, and blockchain empower new business models and increase global coordination.

The small and medium size businesses that are so important to this country, if they have to go through a wave of avoidable insolvencies,  you’ve lost something there that’s more than just a few businesses.You know, it’s really the job creation machine. And that weighs on the economy going forward.

I’m highly confident of that. PELLEY: Finally, what metrics are you looking at here hour by hour, day to day, to divine what the future is going to be? Fed Chairman Jerome Powell told "60 Minutes" that people shouldn't "bet against the American economy.". So I would say the peak unemployment might be in the next couple of months.

PELLEY: Well, that is the question that everyone wants an answer to: “What is a while?” Can there be a recovery without a reasonably effective vaccine? U.S. Federal Reserve Chairman Jerome Powell appeared on 60 minutes May 17 th discussing the Fed’s recent operations to stabilize the economy. Bitcoin possesses these properties, and every day it continues to exist according to its preset monetary policy, investors and users gain confidence in the system. Companies have pulled down their lines of credit.

In addition, the Fed is buying corporate and municipal bonds. PELLEY: What economic reality do the American people need to be prepared for? We printed digitally. The first is that the cause here– we had a very healthy economy two months ago. And that’s something we’re going to have to deal with. … Jerome Powell gave an interview to “60 Minutes”, which was broadcast Sunday (May 17, 2020) night. The Fed’s balance sheet displays its assets and liabilities.

This is not the time to prioritize that concern. PELLEY: 25% is the estimated height of unemployment during the Great Depression. They were a key mechanism for amplifying bad things that happened. And it won’t take that long to get there.

And we spent ten years strengthening it after the last crisis. POWELL: Well, I think you’ll see, again assuming there’s not a second wave of the coronavirus, I think you’ll see the economy recover steadily through the second half of this year.

So certain parts of the economy will recover much more slowly. And the spending that we’re doing to support people and businesses will help us do that.

America's Economic Future – A Discussion By Ted Kavadas, Jerome Powell gave an interview to “60 Minutes”, which was broadcast Sunday (May 17, 2020) night. However, he added that "for the economy to fully recover ... that may have to await the arrival of a vaccine.". Get this delivered to your inbox, and more info about our products and services.