More help will be needed both from the Federal Reserve and Congress to get the U.S. economy through its current slump, Dallas Fed President Robert Kaplan told CNBC.
At least some of that aid likely will need to go to state and local governments, which have been hampered by lost revenue during the coronavirus pandemic, Kaplan said in an interview Wednesday on "Squawk Box."
His comments reflect those of Fed Chairman Jerome Powell, who told a Senate panel Tuesday that governments that are required to balance their budgets likely will need additional aid to survive without have to resort to mass layoffs. "My guess is we are going to need to do more. But my guess is also you're going to need more fiscal action, whether it's aid to governments or other fiscal action as we go through this," Kaplan said.
"The problem is we're going to have an unemployment rate that peaks at around 20%, which we're going to reach very soon," he added. "We're going to end the year with an unemployment rate as high as 10%, and we're going to need to grind that down, and it's probably going to take more fiscal action to help grind that down."
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