Federal Reserve Chairman Powell: The balance sheet is an effective tool.

On March 31st, Sina Finance reported that Federal Reserve Chairman Powell defended the Fed's asset purchase actions and acknowledged the uncertainty about how much help this action can actually provide to the economy. Powell said in a speech at Harvard University, "We have not yet seen the downside risks of asset purchases during times of severe stress." He also stated, "Purchasing long-term assets does reduce interest rates and does provide some support for economic activity."