(Reuters) – Lack of U.S. government assistance to households could lead to a spate of mortgage defaults and forced evictions, Federal Reserve Chairman Jerome Powell said Wednesday in Congress.
Talking about the $ 2.3 trillion stimulus measures approved by Congress in March, Powell said that “the risk is that they (households) will spend this money at some point and have to cut spending and possibly lose their house or rent. ”
“This is the risk of a lack of new measures. We do not see much of this yet, but it may well happen in the not too distant future,” Powell said during a speech before the Senate Banking Committee.
(Howard Schneider, Anne Safir. Translated by Vladimir Sadykov. Editor Marina Bobrova)