Fed’s Rosengren says more targeted fiscal aid needed

With the pandemic lasting longer than expected, more fiscal aid is needed to keep U.S. businesses and households afloat, Boston Federal Reserve President Eric Rosengren said on Wednesday.

Some businesses that borrowed in the corporate bond market before the crisis may now face issues paying off that debt, Rosengren said.

“It would have been fine if the pandemic lasted three months, but the pandemic isn’t lasting three months,” Rosengren said. “It’s lasting much longer than that and so there’s definitely a need for more targeted spending.”

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