New York City (Reuters) – Wall Street’s three major indexes closed lower for the second day in a row after Federal Reserve Chairman Jerome Powell alerted on Wednesday of extended economic weak point due to the coronavirus pandemic and required Congress to settle on additional fiscal support.
While the indexes closed above their session lows as they pared losses in the last minutes of the day, financiers appeared to price in a much deeper financial slump than they had previously expected, fearing Powell’s call for extra stimulus would go unanswered.
While Powell vowed in a webcast to use the U.S. central bank’s power as required, he suggested that it may not suffice to avoid deep economic damage without more financial assistance.
” He’s saying if you wish to avoid a sluggish recovery and long-lasting economic damage you require a strong fiscal action, effectively placing that obligation back over to governments rather of reserve banks,” stated Shawn Cruz, supervisor of trader strategy at TD Ameritrade in Jersey City, New Jersey.
And departments among Republicans and Democrats appear to have dimmed the potential customers for additional financial assistance from Congress, according to Jeff Kleintop, chief global financial investment strategist at Charles Schwab.
Market participants said they were relieved by Powell’s indicator that the Fed would not