Powell said that although technological advances are generally positive for society in the long run, they will cause damage in the short term, and as the market adapts to the new normal, this pain cannot be shared equally.
For example, low-wage workers and jobs that require face-to-face interaction (such as retail or restaurant workers) may bear most of the burden of this transition. Powell said that these groups, which are heavily biased towards women and ethnic minorities, are already among the groups most affected by the pandemic and layoffs.
The central bank governor said that in general, inequality hinders economic development.
“Even if the unemployment rate drops and there is a vaccine, there will still be a considerable number of workers who need support when they find their way in the post-pandemic economy because of some basic methods.”
Need to do more work
Powell has long said that the economy may need more stimulus measures from the government and central bank to weather the crisis. He responded to this view again on Thursday.
He said: “My feeling is that we will need to do more, and Congress will need to do more.”
Although the prospect of vaccines is big news, there are still many problems, including the recurrence of the virus around the world.
“The main risks we see today […] “This is the further spread of the disease in the United States.” He said. Some states have restarted restrictions on the epidemic to curb the spread.
After Powell made sober comments, US stocks weakened. The market has recently been pinning its hopes on vaccines.