Stimulus stalemate leaves economy on the brink

ABC News Chief Business Correspondent Rebecca Jarvis speaks with Federal Reserve Bank of San Francisco President Mary Daly, who says more economic stimulus is “nothing short of critical.”
5:28 | 10/16/20

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Transcript for Stimulus stalemate leaves economy on the brink
The pandemic is also continuing tickets hole on the American economy nearly 900000 more Americans filed new unemployment claims last week the thirtieth street week of historically high claims an overall more than 25 million Americans are receiving jobless benefits but Washington remains deadlocked over providing more much needed economic stimulus the roller coaster of negotiations going nowhere fast with. Little sign of the deal before Election Day. Here's ABC's chief business and economics correspondent Rebecca Jarvis. With Washington at a stalemate over plans for a new round of stimulus to fight the devastating consequences of the pandemic. I'd say at this point getting something done before the election and executing on that it would be difficult just given where we are. Don't let perfect be the enemy of the good as they say who knowing near perfect. Madam speaker always the case but we're not even close to the good. The economic recovery facing increasing pressure. Rehiring slow wing layoffs rising 898000. More Americans filing new claims for unemployment last week. And now more than eight million people have fallen into poverty since the start of the crisis. Eleven million people who lost their jobs during the pandemic still don't happen back how important is in your list from Washington right now. It's critical just not be short a critical. These councils. Eight million people who swore no fault of their jobs or lightly light away we are night one or. A knee additional bridge she will get really can't detonate and ready to work when jobs are available. In an exclusive interview with ABC news Mary Daly the president of the federal reserve bank of San Francisco calling on congress to get a deal done now. What happens if Washington doesn't answer would simulate singer. It's not Corey. Don't wanna say it another decade or weeded out the daily joining a growing list of economists including fed chair Jerome Powell. Who say failure to act now puts the recovery at risk and deepens the despair. Alternately Wheatley and an economic system that quite in it she can win one of a struggles all of us humble it's really something we are we are you connect it so everyday we wedding Wendy. You get a neck tentative DC who started her restaurant mighty and not in Denver Colorado nine years ago is one of the many desperately waiting. And my big name is Lee it 300 dollar iris and no warning English. Currently thinking in this country and done now pretty cool bit we. I got a shirt. We ran crying I'm a little pretty clean that we Wear high of the Kerner Ian a big business that was blue green and marine. Witten cove it hit La Mano was forced to close to relocations. And lead off 60% of her teen. Seals have started to pick up but are nowhere near pre pandemic levels and without help from the government she says her business is at risk. I think what the true owners. Now we don't have this New York City owns this kind where we can Piorek Earth Day in Britain a rare weekend PP. And what do you say it. Says well let me just go to your bank loan from your bank. We and gasoline in the industry Eddie Berry each. Normandy. Hobby I too am a normal. Dresser. East bay Norma would be me crashing interest thinks murmured all or three years and they are there were two in the trailer being able to lower earnings. Considering how states are now wind up. Her consider cutting checks directly to the American people we are waning hours. Outstanding tourists in 1913 minute trip together they say you controlling interest rate journey it's your only real tool to manage it on each and congress sets spending decisions or really. Congress and you know that saying that I she going back to is currently being able man on the news and immediately I think he can get this time and her big. The Fed signaled it expects to keep interest rates near zero for the next three years and has additionally pledged to do what every takes to boost lending. Committing trillions of dollars to purchasing corporate debt mortgage backed securities and treasuries. In. Frustration inside the bad that year we are in trillions of dollars an unprecedented amount of stimulus at this problem. And Washington. Has been at a stalemate for months while more people are losing their jobs the rehiring is slowing down and that at least. Some of the progress that was made earlier in the so after years to be stalling or not existed anymore. Oh I'm faced with a heart problem. She choices you get frustrated or get busy. As for the rain she says she will also stay busy fighting to keep the doors of my via Tampa not a open. Business is being pills he's not sure that you close a door offering sir you're seeing real change her. You're shooting effort that you are pretty you know these years. Our thanks to Rebecca for that.

This transcript has been automatically generated and may not be 100% accurate.

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