Powell speech: Layoffs by state and local governments will slow economic recovery

FOMC Chairman Jerome Powell is testifying before the Senate Banking Committee in a hearing entitled “The Quarterly CARES Act Report to Congress.”

Key quotes

"The Fed is continuing to monitor the US mortgage market."

"The Fed can only address short-term funding needs of state and local governments."

"Layoffs by state and local governments will slow the US economic recovery."

Market reaction

These comments don't seem to be having a significant impact on market sentiment. As of writing, the Dow Jones Industrial Average was down 0.67% on the day while the Nasdaq Composite was gaining 0.57%.