U.S. economic recovery “remains uneven and far from perfect” Federal Reserve Chair Jerome Powell told a committee of US Senators on Tuesday.
Powell said in a semi-annual update on monetary policy first released under President Joe Biden that the Fed will not change monetary policy soon given the slow recovery of the labor market. It was.
Powell told the Senate Banking Commission about concerns that millions of Americans, especially those who are already members of vulnerable communities, are not working.
“The recession hasn’t fallen equally to all Americans, and those who bear the least burden have been hit hardest,” Powell said.
“Unemployment was heavily focused on jobs in the public services sector. They tend to be low-paying and often biased towards minorities and women.”
He said unemployment “somehow seems to be aimed at those people exactly, and we are familiar with it.”
The chair reiterated the concern raised by Treasury Secretary Janet Yellen that labor force participation was lower than pre-pandemic levels.
Both economists say the official 6.3% unemployment rate is deceptively low, given that so many Americans are not actively looking for jobs and are therefore not counted in the official unemployment rate. Stated.
“The unemployment rate announced during Covid dramatically underestimates the deterioration of the labor market,” Powell said. Remarks He pointed out that the unemployment rate, which was created earlier this month to count people not looking for a job, would be close to 10%.
Yellen speaking at an event on Monday Said Ten million Americans were officially counted as unemployed, and another four million dropped out of the workforce.According to recent reports, working mothers of toddlers have seen a particularly sharp decline in labor participation during the pandemic process. Report From the Minneapolis Federal Reserve System.
During Powell’s testimony, Republicans pushed the chair to address their concern about Biden’s $ 1.9 trillion economic stimulus. plansThe Democratic Party’s attempt to pass Congress this week will lead to high inflation. Powell downplayed their concerns about inflation-causing aid, as he did in recent weeks.
“As far as I can understand, this is not the issue,” Powell said, saying the Federal Reserve has the tools to challenge rising inflation.
Powell emphasized that the top priority for reviving the economy should be to continue vaccination efforts that “give hope for a return to normal later this year.”
The chair is expected to testify again tomorrow in front of the House Financial Services Commission.
The Federal Reserve Board warns that the US economic recovery is “uneven and far from perfect.”Federal Reserve
Source link The Federal Reserve Board warns that the US economic recovery is “uneven and far from perfect.”Federal Reserve