Yellen, a former Fed chair, has advocated for more spending to aid small businesses and the unemployed during COVID-19.
Companies hurt by the pandemic could end up paying investors a full percentage point more in interest to buy their bonds.
Fed programs and policy have helped ease economic pain during the pandemic. In its dwindling days, the Trump administration will end some of those emergency programs Dec. 31.
Economist Karen Petrou says the Fed programs have fallen short, but that the Fed needs some facilities in the face of inaction from Congress.
The president of the NY Fed expects the economy to fully recover within a few years, despite current setbacks as the virus continues to spread.
U.S. Federal Reserve Chair Jerome Powell said Congress “may need to do more” to cushion the blow from the pandemic.
Social distancing and wearing masks will help get the economy back to full strength, Powell said Thursday.
The central bank dropped the minimum loan amount under its Main Street Lending Program to $100,000. But not many businesses feel confident taking out loans they'll have to repay in five years.
Trump has pressured the head of the Federal Reserve to lower interest rates. But he wasn't the first American leader to do so.
Powell said that government support has so far prevented a recessionary “downward spiral."