Congressman Kim Calls for Additional Financial Support to Help New Jersey Get Through Crisis in Hearing with Fed Chair

Statement

Today, during a hearing of the House Select Committee on the Coronavirus Crisis, Congressman Andy Kim (NJ-03) pressed Federal Reserve Chair Jerome H. Powell on the need for additional federal support to state and local governments to ensure a full economic recovery from the ongoing coronavirus crisis.

Congressman Kim began his questions by citing a previous hearing with former Federal Reserve Chairman Ben Bernanke in which the former Chairman stated that, "federal level, state and local budget cuts meaningfully slowed the recovery" of the U.S. economy in the wake of the 2008 recession.

When asked if he agreed with former Chairman Bernanke on his assessment that cuts to state and local funding could negatively impact a recovery to the current economic downturn, Chairman Powell stated, "Yes, there has been a great deal of research into that question, and it does generally support that view."

Chairman Powell later went on to agree that "there is going to be a need for further support" or additional economic aid to states and localities, and "if we provide the right amount of support, in a few years this [crisis] doesn't need to leave a permanent mark on the economy."

"This is about our country as a whole, our economy as a whole," said Congressman Kim in his call for additional support to help states and localities recover from the economic impact of the coronavirus crisis. "It's not just about helping certain states and certain cities -- both red and blue, both Republican and Democratic -- it's about helping our national economy as a whole."

Earlier this week, Congressman Kim released "The Way Forward: Preparing America for a Second Wave', a set of recommendations for public health leaders and public officials to prepare for a potential second wave of COVID-19.

Congressman Kim is a member of the bipartisan House Select Committee on the Coronavirus Crisis, where he serves as one of twelve members of the House tasked with conducting oversight over programs aimed at ending the Coronavirus pandemic and helping address the economic impact it's having on the American people. Congressman Kim is also a member of the House Armed Services Committee and the House Committee on Small Business.

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