With strained stimulus talks, Federal Reserve Chair Jerome Powell expressed concern for the possibility of a weak economic recovery in the U.S. without continued financial aid from the government.
“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said in the text of a speech for a virtual conference hosted by the National Association for Business Economics. “By contrast, the risks of overdoing it seem, for now, to be smaller. Even if policy actions ultimately prove to be greater than needed, they will not go to waste,” Powell said, calling for Congress to pass additional stimulus packages to keep the outlook for continued economic recovery intact.
The debate for additional aid, on top of the roughly $3 trillion from the previous stimulus package, has been going on for months. “The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods,” Powell said.
Delivery Peak Approaching…
Regardless of whether the stimulus package will be passed or not, E-commerce is expected to continue to grow throughout the holiday season, placing added strain on the supply chain and increasing demand for final-mile deliveries. While online shopping was already booming before the pandemic hit, it increased exponentially during the pandemic when many consumers began staying home.
“We’re anticipating an unprecedented peak season. It will be an industry-wide ‘ship-a-thon’ that we’ve never seen before,” said Ryan Kelly, vice president of global e-commerce marketing at FedEx Corp. “The growth that we expected to see over a period of several years happened over a period of only several months,” he said.
With significant growth still on the horizon, there is likely to be much more demand than capacity in the marketplace.