Powell: Virus resurgence harming recovery

"We have seen some signs in recent weeks that the increase in virus cases and the renewed measures to control it are starting to weigh on economic activity," Powell said in a news conference following release of the U.S. central bank's latest policy statement.

The United States "has entered a new phase in containing the virus, which is essential to protect both our health and our economy."

Powell's comments, made via videoconference, confirmed what many economists and other analysts have maintained in recent weeks as coronavirus infections exploded in a number of southern and southwestern states, dimming hopes for a quick economic rebound.