Federal Reserve Chairman Jerome Powell on Wednesday painted a dour picture on the state of U.S. employment, saying continued aggressive policy support is needed to fix the myriad issues still facing workers.
Addressing the issue will require a “patiently accommodative monetary policy that embraces the lessons of the past” regarding the benefits that low interest rates bring to the labor market, the central bank chief told the Economic Club of New York.
Even though the economy has reclaimed more than 12 million jobs since the early days of the Covid pandemic, Powell said the U.S. is “a long way” from where it needs to be in terms of employment.
“Fully realizing the benefits of a strong labor market will take continued support from both near-term policy and longer-run investments so that all those seeking jobs have the skills and opportunities that will enable them to contribute to, and share in, the benefits of prosperity,” he said in prepared remarks.
Despite an unemployment rate that has fallen to 6.3%, Fed chair Jerome Powell said the employment picture is “a long way” from where it needs to be.
Powell noted that the actual unemployment rate is probably closer to 10% and said the Fed needs to stay focused on its “broad and inclusive” employment goal.
Reference: CNBC
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