Lael Brainard, President of the Federal Reserve Board, delivered a speech at the John F. Kennedy School of Government, Harvard University, Cambridge, Massachusetts, on March 1, 2017.
Brian Snyder | Reuters
Federal Reserve Governor Lael Brainard said that the unemployment rate of the lowest-wage workers in the United States exceeds 20%, highlighting the importance of policy assistance to the economy.
The figure shows that since the control of the Covid-1
Brainard said in a speech on Wednesday: “The damage caused by COVID-19 is concentrated in the people who have already been challenged.” “The K-shaped recovery is still highly uneven, with certain departments and groups.
Encountered great difficulties. “
Brainard said that when the national unemployment rate fell from 14.7% at the peak of the pandemic to the current 6.7%, Fed economists estimated that the unemployment rate for the lowest quarter of the population “may exceed 20%.”
The unemployment rate for blacks was 9.9%, the unemployment rate for Hispanics was 9.3%, and the unemployment rate for whites was 6%.
Fed officials have made “inclusive” employment a priority and adjusted their policies to achieve this goal. A new approach would make the inflation rate higher than the Fed’s 2% target, and the unemployment rate would be lower than the traditionally higher inflation rate before the Fed raised interest rates.
In recent days, central bank spokespersons have put forward different views on the future of policy. Some people worry that the inflation rate is rising faster than expected.
Brainard did not promise a time limit for policy adjustment, but pointed out that “the economy is still far from our goal.”
She said: “We are firmly committed to achieving our maximum employment rate and average inflation target.” “It’s too early to say how long it will take. The committee has made it clear that it needs to achieve our Substantial further progress has been made towards the goal of
The Federal Reserve currently buys at least $120 billion in bonds every month and keeps its benchmark short-term borrowing rate near zero. Fed officials continue to call on Congress to provide more financial assistance.