Fed’s Bostic warns of ‘pain’ with summer end to government aid

(C) Reuters. FILE PHOTO: Federal Reserve Bank of Atlanta President Raphael Bostic participates in a panel discussion in Atlanta

(Reuters) – With several government programs designed to cushion the blow from the coronavirus crisis expected to expire this summer, cities need to prepare to help people in “perilous” positions, Atlanta Federal Reserve Bank President Raphael Bostic warned on Friday.

“All the relief efforts that have been put forward actually have worked, and … played an important role in helping mitigate the pain and distress of families,” Bostic told a virtual meeting of the U.S. Conference of Mayors, referring to eviction moratoriums and extra unemployment benefits slated to expire on July 31, among other aid.

“We have to think that there may be some real pain that might be on the horizon,” he said, adding that cities should try to reserve funds to help renters and homeowners who could lose their housing.