Fed's Action on Cash Availability During Hurricane Crises

Fed's Support for Banks in Crisis

Federal Reserve Chair Jerome Powell stated Monday that the Fed can assist regional and local banks in hurricane-impacted areas to ensure they possess sufficient cash on hand for customers amid ongoing emergencies. As Hurricane Helene causes significant challenges, Powell highlighted, “We have the ability through the reserve banks to make sure that the banks have available cash so that if power is out for a significant amount of time, there’s enough cash to do transactions.”

Encouragement for Local Banks

Powell encouraged bankers to collaborate with customers in affected regions, stressing that the Fed must remain “mainly on the sidelines” but is sympathetic to the difficult circumstances faced by the public. Hurricane Helene has tragically taken over 100 lives, wreaking havoc through Florida, Georgia, the Carolinas, and Tennessee with images of damaged properties widespread on social media.

FEMA's Role

According to FEMA, more than 1,000 personnel are actively assisting states hit by the hurricane. They are delivering essential supplies such as meals, water, and generators to support recovery. Access to cash is essential during emergencies, allowing flexibility as needs shift. As stated by USA.gov, cash donations are “the best way to help after a disaster.”